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As it unveiled new brand identity, mobile handset firm Micromax Informatics has announced investments to the tune of ₹2,000 crore in the next 5-6 years to boost manufacturing and research and development. The firm, however, doesn’t have any immediate plan to raise funds.
With a market share of 14 per cent in the Indian mobile market with 22 crore phones a year, the firm targets to increase its share to 20 per cent this year. The market would have grown by 10 per cent to about 24 crore next year.
The firm, which registered a turnover of ₹12,000 crore in 2015-16, is targeting a growth rate of 25 per cent to cross the ₹15,000-crore mark this financial year.
“We can raise funds through internal accruals. When we want to raise, it can be through an IPO or private equity route,” Rajesh Agarwal, co-founder of Micromax, has said.
The promoters have 80 per cent equity in the privately held firm, with the rest being held by PE players.
He was here on Thursday in connection with the inauguration of its manufacturing facility in the E-City near the GMR Hyderabad International Airport here. The firm invested ₹100 crore on the 19-acre facility, which was inaugurated by Telangana IT Minister K T Rama Rao.
It is planning to shift its research and development centre from China to India.
Rajesh Agarwal requested the Telangana government to allocate land to build the R&D centre that would go a long way in developing “backward integration” capabilities in the country to make it a manufacturing hub in the true sense.
Responding to this request, Rama Rao said the government would provide land to the company for setting up the centre.
The facility has a capacity to produce 10 lakh devices a month, which include mobile phones, LED TVs, LED lights and tablets. It presently employs 700 people. The firm’s first facility in Uttarakhand has a capacity to produce 16 lakh devices. “Our target is to meet all local demand through our manufacturing units in India. We are going to invest to build capacities,” he said.
Bhagwati Products Ltd, a group firm, runs the manufacturing facilities for its captive use.
International plans Micromax said it is going to tap 2-3 new countries this year.
He, however, refused to name the countries. “We are No. 3 in Russia. International business contributes 8 per cent to our revenues,” he said.
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