Karbonn Mobiles Is Shutting Down, Files For Closure

Karbonn Mobiles, once a strong force to reckon with in the Indian mobile phone space, is closing down. And it’s official – the company has filed for closure with the concerned government authorities.

The company that sells and distributes mobile phones under the Karbonn brand is registered in the Ministry of Corporate Affairs as Karbonn Mobile India Private Limited having three directors – Pardeep Jain, Sudhir Kumar Hasija and Potluri Rajmohan Rao.

The company has submitted the relevant documents with the MCA under the category ‘Strike Off’ and the said process is being worked out.

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With this Karbonn becomes the first domestic mobile phone company to officially go for a closure, though there are many home grown brands that have almost stopped business or just lying idle. Mobile phone brands including YU, Celkon, Gionee, Intex and Micromax – all fall under this category.

These companies have lost the plot and given up the space to Chinese phone makers including Xiaomi, Oppo, Vivo and Realme.

Karbonn started its operations in India during the fag end of 2009 and by 2011, it was a strong brand in India, both in terms of revenue as well as volume of mobile phones it sold annually.

From 2012 to second quarter of 2015, the company was among the top five mobile phone brands in the country in terms of its annual shipment volumes. Among the domestic mobile phone brands, it was inches below Micromax, that remained the biggest Indian mobile phone brand of all time. However, during Q3 of 2013, Karbonn Mobiles was appearing to dislodge Micromax from its top position as the difference between the shipment volume between the two brands were few thousand units only.

However, the Delhi HQ company, that was a joint venture between Delhi-based Jaina Group and Bangalore-based UTL, continued to loose focus starting 2015 and could not launch smartphones as per the customers’ expectation. The situation also got aggravated with the entry of Chinese players like Xiaomi that brought better-looking, stylish and better-performing smartphones that were also more affordable.

As per a recent Counterpoint Report, Chinese smartphone brands now command over 66% market share of the Indian smartphone industry.

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