HTech eyes India IPO in next four years to expand manufacturing ops, retail presence: Report

Smartphone brand HTech is looking at an initial public offering (IPO) in the coming four years to expand its manufacturing operations and retail presence in the country. The company is already profitable in trading its products in the market but is yet to achieve the same in the operational realm, HTech CEO Madhav Sheth told The Economic Times. 

"IPO for me... is not just about the topline, but also the bottom line because without being profitbale, we cannot just get into the financial markets," Sheth told ET.

He also said that the company is breaking even from a contribution margin perspective. "On the gross side, we are even, but on the net side, we still have some way to go," the HTech CEO further noted. 

The latest HTech handset is being imported from the smartphone brand's Chinese suppliers. Sheth said that advanced technologies in the handset cannot be manufactured in India as of yet. 

He further explained that the company had to import completely boxed units of the product. Madhav Sheth also mentioned that the product has been subsidised from the factory itself to ensure competitive pricing.

Sheth also said the company is in talks with production linked incentive (PLI)-eligible manufacturers to make Honor phones in India from the next fiscal without compromising on the quality of the products. 

Madhav Sheth said specific machines, required to make these phones, come from Japan and Honor has been using them in China. He added that the company needs to get these machines to India over a period of time. 

In June last year, Madhav Sheth quit Realme India as the company's VP for Business and Corporate Strategy (Global).  Madhav Sheth played a key role in the launch of Honor-branded smartphones in India.

"Goodbye can be disheartening, but the world is too small until we meet again. Farewell for now, but our paths may cross again soon, and that's something to look forward to building a better and bigger future," Sheth said on X (formerly Twitter) at the time. 

In August 2023, HTech was spun off as an independent entity from PSAV Global, the firm that previously had the license to sell Honor products in India. 

Also Read: Honor X9b launched in India: Top specs, key features, price and everything else you need to know