Mobile handset manufacturer Micromax Informatics is planning to invest Rs 2,000 crore in the next five to six years for building a complete manufacturing ecosystem in the country. Targeting a growth of 25% during this year, the company opened its new manufacturing facility in Telangana on Thursday with an investment of R100 crore.
Talking to media, Rajesh Agarwal, co-founder, said that the company is working on a steady business model to report a 25% growth in revenues for this fiscal. The company reported R12,000 crore revenues in FY15-16 and is targeting R25,000 crore during 2016-17. “To expand our business, we will invest about R2,000 crore in the next five to six years for building an entire electronics ecosystem in the country,” he said.
When asked about funding plans, he said, “We do not have any immediate plans to go for an IPO. However, we have multiple options and can look at raising funds through private equity (PE) funding or an IPO as well,” he said.
“At present, we are self-funded. While the promoters hold 80% stake, the rest is held by PE investors. There is enough room for raising funds,” he added.
As part of its backward integration plan, Micromax is also open to joint ventures with international players to strengthen its component manufacturing process. Besides, it is also planning to expand its international operations to two to three more countries this year. It is already present in SAARC countries and Russia and may expand to CIS countries, Africa and Iran.