The arrest of Hari Om Rau, founder of homegrown device producer Lava International hit the spirits of the mobile manufacturing sector all-time low, ICEA said on Saturday. The Enforcement Directorate arrested Rai concerning an alleged money laundering case involving the Chinese smart devices maker Vivo.
“We understand that the morale of the industry has hit an all time low and national champions are feeling very demoralised. We want to assure them that we have full confidence in India’s regulatory and judicial system and we are sure that he (Rai) will emerge from the clouds and continue to champion the development of our industry which is critical in building the nation,” ICEA chairman Pankaj Mohindroo said in a statement.
Last year in July ED raided Vivo and its linked people, alleging to have caught a big money laundering racket including Chinese nationals and various Indian companies.
The ED had then claimed that a huge Rs 62,476 crore was “illegally” transferred by Vivo to China to evade Indian taxes.
“His contribution in the massive growth in mobile phone manufacturing in India is well acknowledged by all the stakeholders which has resulted in creation of USD 44 billion mobile manufacturing ecosystem with more than 1 million new jobs. He made sure that Lava survived as a national brand and is the last man standing,” Mohindroo said.
Lava stands out as the sole Indian mobile phone company to endure the surge of Chinese device manufacturers in the country with aggressive pricing.
Despite holding a modest market share of less than two percent in the smartphone segment, the company dominates the feature phone sector with an estimated 25 percent share.
In a recent announcement, Lava revealed its intention to invest up to Rs 600 crore in product development and marketing this month. The goal is to expand its business significantly, targeting a fivefold growth and aiming to secure a 10 percent market share in the sub-Rs 30,000 smartphone segment.
