Home-grown Intex Technologies is adopting a multi-pronged strategy to double its margins to about 8%. The smartphone maker also plans to up its exports share to reach 10% of its overall revenue by adding more countries...
Home-grown Intex Technologies is adopting a multi-pronged strategy to double its margins to about 8%. The smartphone maker also plans to up its exports share to reach 10% of its overall revenue by adding more countries to the export list and focus on high value smartphones, as it aims to take on competition from Chinese smartphones makers who have flooded the market in the past few years by selling handsets at below market prices.
“To grow we need to expand our product portfolio and geographies,” Narendra Bansal, chairman and managing director of Intex Technologies India told FE in an interview.
As part of its plans, the firm is planning a large integrated manufacturing plant spread over 1 million sq ft at a 20-acre property at Greater Noida at a cost of R1,500 crore, the production of first phase will go on line during December, Bansal said. At this new facility, Intex will consolidate all its manufacturing activities which is currently spread over its four facilities in Jammu and Kashmir, Baddi and Noida, which in turn will help in streamlining its manufacturing process.
The company aims to start producing smartphones first and then add mobile phone accessories such as battery, chargers, headphones, which in turn will help in expanding product portfolio and margins to 7-8% during the fiscal that begins April 1 2017, from about 4% now, he said.
For Intex, the second leg of its strategy is to add more international markets including Egypt, Uganda, Nigeria and Russia in the next few months as it hopes to have atleast 10% of its revenue from exports from next year, Bansal said.
Intex Technologies began its international foray during last fiscal with a contract from Telefonica in Spain. Currently, it exports handsets to all the South and Southeast Asian countries including Vietnam, Indonesia and Myanmar.
The strategy will also be complemented by the company’s plans to launch smartphones with higher sales prices at R7,500 per unit at par with Chinese smartphone makers, upping the average sale prices of its handsets from R4,500 now, he said.
In summary, the strategy would see Intex Technologies revenue increase from about R6,200 crore during last fiscal through March 2016, to R8,000 crore during the current fiscal. “Major growth will come from domestic market, exports will take some time,” Bansal added.
For the ongoing festive season sales, Intex Technologies expects its monthly sales to reach over R600 crore from its average monthly sales of R450 crore, as the company has already piled up inventory till September 30, to meet high consumer demand. The company has filled in inventory of about 2.5 million phones, 1 lakh Televisions, 2.5 lakh power banks, 25,000 washing machines, 2.5 lakh speakers, and 20,000 refrigerators, he said.