 "Rahul Sharma")
Mobile handset and electronics firm Micromax Informatics will increase the share of 4G-enabled phones in its portfolio to 70 per cent by the end of 2016, from 30 per cent, as it expects a huge uptake in 4G services. In an interview with Mansi Taneja, the company's co-founder Rahul Sharma talks about manufacturing mobile phones in India and says the company has no plans of raising fresh capital soon. He spoke after the launch of the company's flagship phone, Yutopia, for its online brand Yu. Edited excerpts:
YU was started almost a year ago. How much traction has the brand received vis-a-vis Micromax phones?
We did not see this kind of success so early when Micromax phones were launched. It was a struggle to establish Micromax as a brand. But, within a year of launching the Yu brand, we are receiving more adulation for this brand and we have achieved huge growth numbers. And, in the coming year, we expect 300 per cent growth for Yu.
The Yutopia has been assembled in India. What are your plans on manufacturing here?
We will soon start manufacturing our phones in India, probably by next year. Yutopia has been completely designed and assembled here. All the best components available across the world have been sourced for this flagship phone. It's a 'Made in India' product and soon we will start 'Make in India.' We are looking to set up three manufacturing units, in Rajasthan, Telangana and Andhra Pradesh. We already have an assembly unit in Uttarakhand.
Do you plan to discontinue your feature phones? How much uptake are you seeing in 4G-enabled handsets?
We are continuing with 2G feature phones, but we are not focused on it. Eventually and slowly, we will discontinue them but as of now, that is not the plan. Established brands have already exited this market.
The focus is on smartphones, especially 4G ones. We are seeing a massive uptake in 4G phones and once Reliance Jio comes, the market will explode.
Currently, in our overall portfolio, we have 30 per cent 4G-enabled handsets, which will increase to 50 per cent in the next couple of months and by the end of 2016, the ratio will reach 70 per cent.
What's the update on raising capital? There were reports of Alibaba buying a stake in Micromax...
We only read such reports in the media. We keep meeting people. No plan of raising funds, fresh equity or debt capital as of now. We are a cash positive company.
Micromax has been the second largest smartphone firm after Samsung. But, the gap between the second and third player - Intex has been reducing quite fast. Your comments
We are looking to close the gap with Samsung. We are an established player now and will try to be gain the top slot with our innovations and offerings.
