Update On The Karbonn Mobiles Closure Story

We filed a story yesterday that Karbonn Mobiles is shutting down and the company has filed relevant papers for its closure with the Ministry of Corporate Affairs or MCA. A documentary evidence was also provided that the company ‘Karbonn Mobile India Private Limited’ is in the process of ‘striking off’.

The company, in a statement, though admitted that the above company is being shut down, reacted to this and explained the technicalities of the company structure that ran the business of Karbonn Mobiles.

The spokesperson of the firm, that did the business for Karbonn Mobiles, said that the business was being conducted by a JV between Jaina Group of Delhi and UTL of Bangalore but the JV never had a ‘MCA-registered name’ and it was always ran as ‘Jaina & UTL’ partnership.

“We never did business as ‘Karbonn Mobile India Pvt Ltd and it was created keeping future requirements in mind,” the spokesperson said. “And the partnership that ran the business of Karbonn Mobiles is continuing to do so.”

However, one can see, the said company Karbonn Mobile India Pvt Ltd, had three directors – Pradeep Jain of Jaina Group, Sudhir Hasija from UTL and one ‘Potluri Rajmohan Rao’.

Karbonn’s operations have always been conducted as a partnership between Jaina Group & UTL (Bangalore) Group with the former focusing on North & West markets (except Gujarat) and the latter focusing on South & East markets (except Bihar & Jharkhand) for sales, distribution and customer service functions.  This arrangement is in force without any changes. Marketing & Product functions have been jointly managed and will also continue as it is. The closure of an entity is purely a corporate compliance move with no effect whatsoever in the way Karbonn operations were being conducted and will continue unabated in the future. Karbonn Mobiles has been operating successfully for over a decade in the entry-level smartphones segment in India and we will continue our efforts to bring the latest technology to the masses,” the company said in a statement.

The spokesperson said the revenues from North and West markets were recorded with the Jaina Group and the business from South and East markets were recorded with the UTL.

Though these are technical explanations how a company functioned in the past, the fact of the matter is, the businesses of the domestic handset players including Karbonn are almost ceased to exist. These players could not fend off for themselves on the eye of Chinese players’ dominance in the Indian mobile phone business.

Many companies, both domestic and Chinese, including Micromax, YU, Celkon, Intex, Comio, Coolpad have either completely shut down their businesses in India or gone for a long ‘silence-period’.

Similarly, Karbonn Mobiles has been lying dormant for many months now, though the company spokesperson, yesterday claimed it is planning to continue with its business in new technologies.

We will keep you updated. Stay with us!

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