 "Keshav Bansal")
While Intex regained the third spot in mobile segment from Lenovo in the first quarter of 2016-17, its public offer would be the first from a prominent smartphone company.
Intex hopes to grow exponentially as a global brand through public listing and its involvement in the Indian Premier League (IPL). “We are currently strategising on an initial public offering (IPO) and discussions are on among board members and the senior management,” said Bansal.
“The biggest gain from being listed is that it puts you on the big league. Funds that you raise are just a by-product”. Bansal said listing in stock market is crucial because he wants to establish a brand which lasts for decades.
Intex Technologies has recently ventured in medical tourism and premium home décor. It garners about 15 per cent revenue from its consumer durables business. Amid cut-throat competition in smartphone handsets, the company has been holding on to the third spot for more than four quarters.
According to Bansal, buying an IPL team was crucial to gain traction among consumers and becomes a global brand. “People’s perception changes when you own an IPL team. It increases credibility of the brand and people start believing that the brand is here to stay.”
Intex management bid aggressively to get hold of a berth in the IPL. The venture has cost Intex nearly Rs 80 crore. While its team, Gujarat Lions, emerged as the top team in the group league stage in its inaugural innings in IPL 2016, Intex had to incur losses. Bansal, however, sees it as a long-term investment.
In 2015-16, Intex clocked Rs 6,400 crore in revenue, 71 per cent higher than 2014-15. While Intex’s revenue grew by 76 per cent compound annual growth rate in the past two years, its market share soared significantly in the smartphone space.
According to International Data Corporation (IDC), a research firm, Intex held 9.2 per cent of the quarterly 24 million units market and dislodged Chinese tech devices giant Lenovo (8.2 per cent) from the third spot.
While the below-Rs 10,000 price segment of handsets has remained Intex’s focus since the beginning in 2007, Intex has finally decided to look beyond. Currently, it is focusing on Rs 10,000 to Rs 12,000 price band and will venture in to more premium categories in a phased manner.
The company sold some seven million handsets 2015 and the volume sales is expected to cross nine million this year.
To cater to the demand, a new manufacturing unit is coming up in Kasna, Uttar Pradesh which will help Intex produce up to 7.5 million handsets a month from 2.5 million now. It will also make LED Televisions, washing machines and other large appliances. Bansal also aims to increase Intex’s global reach. At present, South Asian Association for Regional Cooperation (SAARC) counties and Spain are its biggest export markets.
GROWING STRONG
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IPO likely to be valued at Rs 700 crore (market estimates)
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Its IPL team, Gujarat Lions, had a spectacular inaugural innings in the 9th edition of the league
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The IPL venture is aimed at giving the brand a fillip in consumer mind space
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Last year, Intex ventured in medical tourism and premium home decor to diversify and leverage the brand
- Intex has sold over7 million smartphones since 2007, making it the third largest player in the segment
