Realme moves court to free goods worth ₹30 cr stuck at Wingtech’s Tirupati plant
NEW DELHI
:
Chinese smartphone maker Realme Mobile Telecommunications (India) Pvt. Ltd has moved the Andhra Pradesh high court seeking urgent police protection to recover over 11,000 finished smartphones and accessories stranded at its contract manufacturer Wingtech Mobile Communications (India) Pvt. Ltd’s facility in Tirupati.
The stock, valued at more than ₹30 crore, has been stuck since August amid labour unrest and financial troubles at Wingtech.
The case will be heard by the high court on Thursday.
The plea, reviewed by Mint, said Realme faced significant supply-chain disruptions and mounting losses if the inventory was not promptly secured and released.
“The petitioners are suffering severe hardship and irreparable harm, both in terms of monetary loss and contractual non-performance, due to unlawful and unjustified obstruction caused by the workers of the 8th respondent,” the filing stated.
Wingtech’s operations came to a standstill after the goods and services tax (GST) department attached its bank accounts in July for dues of nearly ₹245 crore, subsequently recovering ₹170 crore. The freeze triggered strikes and protests by its workforce, who blocked Realme’s leased premises inside the factory, preventing the company from moving finished goods despite completed payments.
Mint‘s emailed queries to Realme remained unanswered until press time.
Diwali stock
The stranded stock was meant to be shipped for Diwali sales. According to people familiar with the matter, if not cleared, Realme risks losses exceeding ₹30 crore.
In the court filing, Realme stated that it had signed a master agreement with Wingtech in April 2024 for smartphone manufacturing and had leased 500 square feet within the Tirupati facility for logistics and quality checks. While the company was not a party to Wingtech’s disputes, it claimed its own business was being crippled by the blockade.
The company said it first approached the joint district collector of Tirupati on 26 August, requesting police escort and safe passage for its consignments. Although the collector asked the revenue divisional officer to facilitate the movement of stock, protection was not provided, with officials citing festival deployments. Realme had also appealed to the labour department.
Subsequent meetings with officials, workers, Wingtech, and supplier Luxshare failed to resolve the issue.
Even after obtaining no-objection certificates from both firms to remove the stock, workers continued the blockade, and police declined to accept Realme’s representations, leaving it with no option but to approach the court.
Realme argued that denial of protection violated its constitutional rights under Articles 14 and 21, as it was being arbitrarily deprived of business and property. It has now asked the court to direct the state, police, and revenue authorities to provide a secure corridor for its employees, trucks, and logistics partners to remove the finished goods.
Founded in 2018 by Sky Li as a sub-brand of Oppo, Realme is now an independent company with about 12% share of India’s smartphone market. It shipped 3.6 million units in the June quarter, placing it among the country’s top five smartphone brands.
Wingtech, founded in 2006, is one of China’s largest contract manufacturers. In 2023, it was the third-largest smartphone original design manufacturer (ODM) globally, accounting for 20.6% of outsourced handset production. Its Indian arm, Wingtech Mobile Communications, operates the Tirupati plant.
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