The Hindu Business Line : Meridian launches `Fly' phones

ACTRESS MALAIKA ARORA KHAN launching the Meridian Mobile's Stereo Phone Fly MP330 in Hyderabad on Thursday. Beside her is Mr Rajiv Khanna, CEO of Meridian India Operations. — P.V.Sivakumar

Hyderabad , July 13

Meridian Mobile, a UK-based $1.2-billion mobile phone handset company, has announced the launch of five new phones under the brand name Fly, targeting the middle level user segment and expects to roll out 15 more models by the end of the year.

The company plans to set up 5,000 points of presence with its mobile phones within three months. It has reached 1,500 retail points. It has tied up with retail chains — Pantaloon and Subhiksha, for store in a store.

The Chief Executive Officer of Meridian, Mr Rajiv Khanna, said that the Meridian Group, which is into FMCG distribution in Europe, markets about 2 million handsets a year. Within three years, the company has grown in market reach and expects to further consolidate its presence both in Europe and India, and new markets in the region.

The company expects to sell about three million handsets globally, with India accounting for good numbers.

The last four weeks in India have been exciting for the company, which designs and develops these handsets through a strategic partner in Germany, and gets them manufactured in Korea.

"We have made rapid inroads in the market even without advertising. Model Malaika Arora Khan has been chosen to be the company's brand ambassador in India. In India, about two million handsets are added every month presenting a good market to tap. Of this, about 70 per cent of the market comprises entry-level handsets. We are targeting people who view mobile handsets as not just instruments but lifestyle products, and are willing to spend about Rs 7,500 and above. This segment accounts for about 15 per cent of the overall market," Mr Khanna said.

WALLET PHONE

The replacement market in India is growing at a hectic pace and fully-loaded, feature-rich phones provide ideal option in the replacement market.

Mr Khanna said that the company plans to invest about $2 million (Rs 9 crore) towards marketing spend. The company enjoys about 3.5 per cent market share in the markets it operates and expects to repeat this in India. It is targeting sales of Rs 100 crore this year. "If the volumes zoom over the next two years, the company may consider the option of partnering for local manufacturing with a joint venture partner," he said.

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