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Karbonn’s promoter and Gionee India’s minority shareholder join hands to buy Gionee’s Indian operations

June 28, 2018

Gionee India’s minority shareholder Arvind R Vohra and Karbonn Mobile’ s promoter Pardeep Jain have partnered to collectively sign a long-term brand licensing deal with China-based Gionee to buy its Indian operations. The total deal size is expected to be in the range of Rs 2 to Rs 2.5 billion including Rs 1.25 billion to be paid outright for brand licensing.

As per industry sources, Jain and Vohra have signed a letter of intent and a non-disclosure agreement with Gionee Communication Equipment for acquiring its 74 per cent stake in Gionee India. The remaining 26 per cent is as it is in Vohra’s possession by virtue of him being the minority shareholder of the company.

Also, the Indian partners will have over 10 years of right to use the Gionee brand. Further, apart from an outright payment to Gionee for the brand licensing, they will also pay a royalty to the Chinese company.

Vohra was Gionee India’s chief executive officer (CEO) until July 2017 when the Chinese firm decided to directly control the Indian operations. Chang was subsequently appointed to lead India operations but Vohra continued as executive director.

As per estimates, Gionee currently has around 2-3 per cent share in the Indian smartphone and given the background of the new partners of the firm, industry executives predict that it may not be difficult to revive the brand.

 
 

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