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In a bid to become a full-fledged consumer electronics company, Micromax is foraying into the refrigerators, washing machines and air-coolers segments. The company expects to earn revenues of about ₹2,000 crore from its consumer durable business by 2020.
It already has presence in LED TVs and last year had forayed in the air-conditioners segment.
Rajesh Agarwal, Co-Founder, Micromax Informatics, said: “We have been working on this strategy to become a complete consumer electronics company and expand to non-mobility segments for the past two years.”
In the refrigerators segment, the company will start with the launch of its direct-cool refrigerators and in the washing machine space, it is launching its semi-automatic washing machines this month. The company will launch 12 models of refrigerators, 10 models of washing machines and 17-18 models of air coolers across the country.
“We believe we understand the Indian consumers well and can offer a unique value-for-money proposition. We are starting with the launch of direct cool refrigerators and semi-automatic washing machines. But we will extend this range to frost-free refrigerators and automatic topload washing machines in the future,” he added.
The company has already invested about ₹300 crore to ramp up its manufacturing capacities in the past two to three years. It has three factories at Rudrapur, Hyderabad and Bhiwadi.
“We plan to invest an additional ₹200 crore in the next two years. We believe some of the recent steps taken by the government will foster “Make in India” and we are focussing on domestic manufacturing,” Agarwal added.
Currently, consumer electronics contributes about 20 per cent to Micromax’s total revenues. “With the launch of these new products, we believe the consumer electronics segment will contribute about 30 per cent to the company’s overall revenues by March 2019. We aim to achieve revenues of about ₹2,000 crore from the consumers electronics space by 2020,” he said.
While Agarwal did not reveal the prices of the new products, he said that the company will adopt the “premium economy” pricing strategy.
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