In AN interview with The Economic Times (ET) last week, Nokia’s rising markets head confirmed his resignation. He can leave the company’s Dubai workplace, wherever he oversees the mobile maker’s efforts in over ninety countries, to come to his native India–where he initial joined Nokia eight years agone.
The opportunities and growth area unit in Asian country, he told ET.
“When I joined Nokia, Asian country had concerning eighty million portable subscribers, these days it’s over 900 million. i think that Nokia too had a job to play during this beside mobile operators.”
Shivakumar can advise the corporate within the returning months before his departure, because the company faces a number of its biggest challenges in nearly 20 years of operation on the landmass.
Last week, Nokia was ordered to pay over twenty.8 billion rupees (US$383 million) for taxes owed within the 5 years since 2006/2007, a charge that has been stayed by the Delhi state supreme court.
“Nokia reiterates its position that it’s fully compliance with native laws still because the bilaterally negotiated tax written agreement between the governments of Asian country and Finland and can defend itself smartly,” the corporate declared in a very statement provided to Reuters.
In its recent annual report, the corporate admitted to investors the looming tax investigation might have money consequences.
“During early 2013 Nokia became subject to a tax investigation in Asian country, apparently that specialize in Indian tax consequences of payments created among Nokia for the provision of operative code from its parent company in Finland,” the corporate wrote.
“Such proceedings are often drawn-out, involve actions which will hinder native operations and also the outcome of such proceedings is troublesome to predict. Negative developments or outcome in such proceedings might have adverse effects to our money flows, financial gain statements and to our money position.”
The bill is another blow for the Finnish phone maker in its second biggest market in terms of sales, with revenues plunging twenty five p.c to a pair of.23 billion euros (US$2.85 billion) in 2012, from a high of two.95 billion euros (US$3.78 billion) in 2010.
Nokia hopes a replacement vary of low-priced, Windows eight based mostly smartphones can come its former glory, and it conjointly remains committed to its US$330 million industrial plant in Chennai–its largest mobile device productive capability within the world at thirty five,323 sq. meters–where it recently redoubled wages by up to two hundred p.c.
The company warned that the can be a rough ride with additional obstacles ahead in Asian country.
“Nokia Siemens Networks, still as its competitors, were adversely affected in 2010 by the implementation of security clearance needs in Asian country that prevented the completion of product sales to customers, and will be equally affected once more in future periods, resulting in in progress uncertainty therein market,” the phone maker same in its annual report.