Micromax, one of the largest Indian smartphone manufacturers, is now aiming to grow its business and become a consumer electronics company. For this move, the company has reportedly set aside a fund of approximately Rs. 600 crore, to be invested over a period of three years.
The company is expecting consumer durables products to make up to a fourth of its total revenue. The company, which already has television in the market, is planning to launch washing machines and air conditioners as well. Further, Micromax will launch a new range of television too.
The Gurgaon-based company is hoping to take a leading position in the air conditioners market. Even though the competition is very high in this market — as high as in smartphones, the margins are much better in air conditioners.
Rohan Agarwal, vice president of consumer electronics business at Micromax, said,
Our strategy of connected devices under the broader view of being a consumer electronics company will take a step up with new air conditioner models and then with washing machines. We will invest abut `200 crore every year to build the channel and service.
In line with this new business model, the company has introduced ‘Micromax Home Assist’ application that will allow its AC and TV consumers to get after sales service from over 400 centres.
Micromax aims to get around 60 percent to 65 percent of its business from mobile phones by 2020, 25% from consumer durables and 10-15% from international markets such as Russia, where Micromax plans to launch its LED televisions soon.
It currently has 12% market share in the television market, and aims to achieve a 10-15% share over the next three years in the AC segment. Having launched four models in June 2016, the company plans to add four more this year between the price range of Rs 20,000 and Rs 37,000. The range of new models will have only one window AC and the rest will be split models.
Most of the new devices will be sold primarily in 10 states including Punjab, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Delhi and Rajasthan. The company has set up 4,000 sales points, which it aims to increase to 10,000-12,000 in two years.