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Micromax invests ₹2,000 crore for global expansion

Posted: 18 Apr 2016     Print Version  Bookmark and Share

Keywords:Micromax  Hyderabad  smartphone  Rajesh Agarwal 

Mobile handset maker Micromax will soon produce mobile accessories, including chargers and batteries.

Last week, Micromax announced it is planning to invest ₹2,000 crore over the next five years to expand its production services as part of the company's aggressive play to topple India's leading smartphone company, Samsung.

Micromax co-founder Rajesh Agarwal told local reporters: "Company will expand its operations to two to three countries this year."

The 7-year-old mobile phone manufacturer already has presence in South Asian Association for Regional Cooperation (SAARC) countries as well as in Russia, but Tech Story reported that the company is also looking at Africa and Iran markets as its next target.

Rajesh Agarwal

Agarwal: Micromax will expand to 2-3 countries this year.

Micromax accounts for about 14 per cent of the total domestic market share, selling around 2.5 million units every month, according to the company's data. "We expect our share to go up to 20 per cent in 2016-2017," Agarwal said, according to the news outlet.

Last Thursday, the mobile handset company inaugurated its ₹100 crore Hyderabad unit, which Micromax said is equipped to manufacture not only 1 million mobile units per month, but also LED TVs, LED lights and other electrical gadgets, according to The Economic Times.

Agarwal was quoted by The Hindu saying Micromax will shift its "existing operations from Beijing, China" to its new Hyderabad facility.

Agarwal told reporters the company is targeting to increase its sales from ₹12,000 crore last year to ₹15,000 crore this fiscal year.

Last year, industry watchers said Micromax is already "within striking distance" of Sony—one of the world's largest consumer electronics brand—in India, compared to two years ago, when "Micromax was not even half of Sony in turnover."

A previous Economic Times report said Micromax's sales grew by 47 per cent in 2014-2015, whereas Sony's Indian unit was only able to increase its business by 10 per cent.

Analysts believe the Indian smartphone manufacturer has the potential to even edge out Sony, which is in the midst of exiting the ₹10,000 smartphone segment that will impact its business growth.

A company executive told the news outlet: "Despite smartphone being a bigger market in India as compared to television, its growth rate is high too. Micromax will continue to grow at high double digit pace which might be a challenge for Sony this year."

The recently opened unit is Micromax's second facility in Hyederabad, with Rudrapur in Uttakhand hosting the first. For its new unit, the company is planning to increase its headcount to 1,000.

Construction is already underway for Micromax's next plant in Rajasthan, which entails a ₹500 crore investment.

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