Homegrown mobile handset maker Lava International has said that the company would come out with an initial public offering (IPO) over the next three-five years, as the company targets to achieve a market share of around 25 per cent, from around five per cent right now.

The company which is completing 15 years of its existence on Wednesday (March 27), also said that it will invest ₹500 crore in research and development (R&D) and marketing over the next two years.

“We will lead the decolonisation of this industry because that’s the only way for us to come out of the economic colonisation...it hurts when you enter the shops and see 90-95 per cent of the shop is filled with foreign brands. How do you feel as an Indian?...So that is the emotion we carry and we believe that we will lead with that responsibility and ensure that we get to a point where in 25 per cent of the share of this industry in India is with us,” Sunil Raina, Managing Director, Lava International, told businessline.

Clear path

He said there is a clear path to grow despite the massive competition in the market and the large players that Lava is fighting against. There are Chinese brands like Vivo, Xiaomi, Oppo and Realme which are much ahead of Lava’s market share right now.

According to research firm Counterpoint’s report, Vivo has a market share of 17 per cent in the smartphone segment in 2023, followed by Xiaomi with 16.5 per cent market share, Realme at 12 per cent and Oppo with 10.5 per cent market share respectively. Samsung led the market in 2023 with 18 per cent market share.

Meanwhile, when asked about an IPO for growing the market, Raina said, “There are more people who want to be part of this journey and of course we will attempt to go for an IPO at some point in time, and other than that also we will find resources for growth. That will not be a problem.”

International business

For exports, he said Lava has expanded its international business with the entrance in Nepal, Sri Lanka, Qatar, UAE, Bangladesh and Latin American Countries (with acquisition of B-mobiles). In the Nepal market, Lava has captured 12 per cent market in Feature phones and will close the market share with 25 per cent market share this year.

Lava has also signed memorandum of understandings with IIT-Kanpur and Amity University aimed at advancing research in the fields of Mobile Technology, 5G, Internet of Things (IoT) and Cyber Security, Raina added.

On new launches, Raina said that the company will be launching around 10 smartphones this year and it is also entering the smartwatch category with the launch of the first product next month (mid-April).