Nokia in India: Nokia Diving Deeper Into This Mega-Market…Should You Buy?

Nokia in India: Like many tech companies, it appears that Nokia Corporation (ADR) (NYSE:NOK) is looking to grab onto a larger hold of the market share in India. Of course, there are many obstacles standing in the company’s way.

First and foremost, Nokia is not the only company that is looking to dive deeper into this market. For example, we talked about Apple Inc. (NASDAQ:AAPL) looking to do the same in this article. This is also the case with Google Inc (NASDAQ:GOOG), as we touched on earlier today.

Nokia Corporation (ADR) (NOK)As if the competition is not enough, Nokia Corporation (ADR) (NYSE:NOK) has to concern itself with a huge tax bill in India along with the fact that the company has been losing market share and dealing with declining revenue in the country over the past two years.

Last week, a report by The Economic Times confirmed that D Shivakumar, Nokia’s operations head for India, West Asia and Africa, is leaving the company after eight years. During his time with Nokia, the company experienced great growth early on but recently fell on hard times.

According to a report by Reuters, “Nokia’s India unit has been served with an income tax demand of about 20.8 billion rupees ($383 million) for five fiscal years starting from 2006/07.”

Along with attempting to bring the company back to respectability in terms of sales and revenue, the person who takes over for Shivakumar will be dealing with this issue. As you can imagine, a $383 million tax bill is nothing to take lightly.

One thing is for sure: Nokia Corporation (ADR) (NYSE:NOK) realizes that the tax problem is a big one. Here is what the company said in its most recent annual report:

“For instance, during early 2013 Nokia became subject to a tax investigation in India, apparently focusing on Indian tax consequences of payments made within Nokia for the supply of operating software from its parent company in Finland. Such proceedings can be lengthy, involve actions that can hinder local operations and the outcome of such proceedings is difficult to predict. Negative developments or outcome in such proceedings could have adverse effects to our cash flows, income statements and to our financial position.”

As Nokia Corporation (ADR) (NYSE:NOK) searches for a new head of operations, many will continue to wonder if the company will ever be able to regain its stronghold in India.

What are your thoughts on where Nokia Corporation (ADR) (NYSE:NOK) stands in India at the present time? Share your opinion in the comment section below.

Check back here for more updates on Nokia in India.

DISCLOSURE: I have no positions in any stock mentioned.

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