Micromax Informatics, once India’s largest smartphone manufacturer by market share, is taking a shot at the top slot again, carrying out recent government measures to improve demand and tackle cheaper imports from China.
In 2014, when it surpassed South Korean consumer electronics giant Samsung in total smartphone shipments in the domestic market, Micromax created history. But since then, it has steadily lost market share, as new brands, especially from China, have taken centre stage with competitive pricing and advanced features.
“Since they were really competitively priced, everybody was looking at Chinese phones,” co-founder Rahul Sharma said in an interview.
However, India’s new production-linked incentive (PLI) scheme, according to Sharma, will tip the scale back in favour of domestic producers , especially Micromax, which still has a strong brand recall.
“Since they were really competitively priced, everybody was looking at Chinese phones,” co-founder Rahul Sharma said in an interview.
However, India’s new production-linked incentive (PLI) scheme, according to Sharma, will tip the scale back in favour of domestic producers , especially Micromax, which still has a strong brand recall.
Sharma added, “I think this is a great cushion that has been given to all the Indian companies that will help us combat these guys.”
Under the PLI program, for five years, the government will offer 4-6 percent incentives to qualifying electronics firms for incremental sales of manufactured products, including cell phones and electronic components such as printed circuit boards and sensors. The base year is 2019-20 and the incentives are applicable from 1 August.
In October, along with 15 other firms, including Rising Star, Wistron, and Pegatron, the government approved Bhagwati Devices, the manufacturer of Micromax phones under the PLI system. Except for Samsung, all the other foreign companies are contract manufacturers for Apple Inc. Along, Samsung and Apple account for almost 60 % of global cell phone revenue.
Sharma says the Indian market needs an Indian brand to take on Chinese smartphone manufacturers, who, given the help of the Chinese government through cross-subsidies for decades, have enjoyed an unfair advantage, rendering them practically impossible to challenge.
A new brand called ‘In’ will be introduced by Micromax soon. The company has been working on the latest suite of goods for 8-9 months, according to Sharma. Micromax can no longer produce low-cost smartphones, Sharma says, unlike in the past.
“We can only come out with items that are performance-oriented. You will no longer see Micromax phones worth $3,000-5,000, he said. The new phones will be in the range of $7,000-10,000 to $20,000-25,000 and will be available to consumers by the end of the year from the beginning of next month, with an entire lineup of ‘In’ branded phones ready. Finally, via Micromax ACs and other products, the smartphones will be accompanied by wired devices.
