Death of a Dream!

Group C3
Christina Dsilva
Crystal Catherine George
Divya Liz George
Geethanjali
George Jacob

Agenda

Introduction

What put Nokia in the hot seat?

Nokia in India

Why Tamil Nadu?

How the plant transformed the lives

Reasons behind the shut down

The Plant Now

Nokia Post Acquisition

Larger Questions

Nokia! When the future was Finnish

Finnish MNC, HQ Espoo

274th largest company in terms of revenue (2013, Fortune 500)

90,000 people across 150 countries.

Telecom Infrastructure, Tech. Development & Licensing and

online mapping services.

Microsoft acquired for $7 billion.

Market Share 2010 & 2013 A

Comparison

What Put Nokia in the Hot Seat?

Nokia in India A Brief Timeline

Began
Operations
1998
1995

Ist phone with user

menu in Hindi
2002
2000

Ist ring
tone

2011

Texts in Hindi,
Ist Wi-Fi enabled
2005
2004

Ist camera
phone 7650

Drop in revenue, Mkt.Share

2012
The Amazing Everyday Campaign
Alliance with Microsoft.

Set up a
plant in TN

54.1%
Market share/
Microfinance
2007

2006
User interfaces
in other languages

2013

2009
1st regional
news portal

Shut the TN operations

2014

Acquisition by
Microsoft

Why Tamil Nadu?

Quick access to International Airport.

Combined support of DMK and AIDMK.

Excellent presentations from the bureaucrats.

Signed MoU on 6 April 2005, Sriperumbudur SEZ.

How the plant transformed the lives..

Performance exceeding the expectations.

Women being major part of the workforce (72%)

Women becoming independent.

Fair wages, good working conditions and trainings.

Social transformation

Reasons Behind the Shutdown

Attracted attention of the wrong kind Politicians.

a. Saw employees as vote banks.
b. Scrap Contracts.
c. Free mobile phones.

Sales tax evasion accusation by TN Government Demand Rs

2,400 Cr

Royalty payments not paid Demand Rs 15,258 Cr

Asset freeze prevented the transfer.

Nokia Plant Now!!

17th August 2014 Contract manufacturing facility.

16th December 2014 Plan to sell in parts.

Appointed Hilco to take over machinery and utilities.

Machinery and Equipment could be worth 54 bn euros.

Reason behind to sell in parts taken by Nokia

Nokia Post Acquisition

Microsoft to control Nokias Devices and Services Business.

Nokias mapping entity not part of the deal.

MS to control IP agreements.

25,000 Nokia employees over to Microsoft.

For consumers - MS will honour any warranties

Future looks bright as per MS

Larger Questions

Good Morning Vietnam!

Indias status as a manufacturing destination

What have the ruling parties done about workers welfare?

What about the land?

Thank You