‘Notebandi’ impacts West Bengal ‘Make in India’ Pioneer

HiTech mobile brand on the verge of closure because of dwindling sales

Demonetization has hit hard West Bengal’s first Make in India mobile company HiTech mobile. Company is on verge of shutting down. Managing Director Mohammed Giasuddin with heavy heart said, “Due to cancellation of notes, phone sales have dropped. In November to October sale has decreased by 40%, while it further decreased in October to December to 70%, and it happened when my business was growing at a rate of 15% per year.”

HiTech Mobile was the call for Make in India initiative in West Bengal. It was providing bread and butter for 550 local people in factory which is situated in Sankarail, Howrah. After demonetization situation has gone worse and now HiTech Mobile has sacked 100 workers from manufacturing plant. “I was planning to start a second unit in Domjur Logistics Park, even major appliance has reached to the extent that we were going to start manufacturing in four to five months but all has gone in vain.” Said Giasuddin.

HiTech is a low-end cell phones which is more popular among low-income people. These phones have more sales in tier 3 and rural areas. Now there is no cash flow and even distributors and stalkist are refusing to stalk and sell these phones. This has lead to major setback for HiTech mobile.

“The whole channel has stopped. We sold 2.5 million phones in October, in November number dropped to 1.5 million and in December it further dropped to 72 to 75 thousand units. We are left with large number of phone components now. The cash flow that was planned in advance, it has become meaningless. Business crash, forced us to reduce staff.” He explained.

Pawan Mahto of RD Enterprise from Bongaigaon, Assam is the distributor for HiTech Mobile said, “The cash supply in the market is slow, there is no possibility of business being normal before April. And, sales will take much time to recover from the shock.”