India-based affordable laptop manufacturing company Primebook to end FY24 with net revenue of Rs 36 crore e on the back of net profit of Rs 4 crore, Chitranshu Mahant, co-founder and CEO, Prime Book, told FE Education. “As for gross revenue we will close FY24 at t Rs 60 crore. We had at the beginning of this fiscal set a target to sell 50,000 units of our laptop Prime Book by the end of last December, but so far have sold 38,000 units,”. The company currently claims to have captured a three percent share of the Indian laptop market.
Interestingly, the company’s revenue from operations grew 1362.10% to Rs 5.65 in FY23 crore from Rs 0.38 crore in FY22, as per data accessed business intelligence platform, Tofler. Moreover, the platform’s net loss narrowed marginally 1.97% to Rs 1.20 crore in FY23 from Rs 1.20 crore, during the same period in the corresponding year. “There are two key aspects to consider. First and foremost, maintaining the profitability of our business operations is crucial. Think of it as selling a device, similar to how HP operates in an industry centred around one-time sales with favourable gross margins. This ensures our ongoing profitability. Secondly, we plan to allocate funds for the company’s research and development as well as growth initiatives,” he added.
Furthermore, the company plans to launch two new products ‘Prime 5G’ and ‘Prime Yoga’ at the beginning of FY25, with increased software and hardware capacities. “The laptop which is compatible with Android apps, enables simultaneous switching between apps and is user-friendly for someone familiar with Android. Unlike traditional Windows laptops which lack access to the Android application ecosystem, Prime Book aims to bridge this gap. The Android applications ecosystem is crucial, given that many cutting-edge technology companies prioritise Android platforms. Prime Book provides complete access to the Android app ecosystem, whereas Windows laptops primarily offer Microsoft software, which is not as education-focused,” he added.
The company claims that the two new products will be priced anywhere between Rs 19,000-20,000. The old product Prime Book cost around Rs 13,000. As per the company, the increase in cost is due to hardware developments in new products. It claims to have forged a partnership with Qualcomm for the development of CPU. “We are currently working on CPU, a significant component contributing to costs, as we aim to integrate 5G capabilities into our prime offerings. Our partnership with Qualcomm has enabled us to employ a higher-quality CPU, resulting in a performance boost of 2.5 times compared to the previous version. This enhancement, however, has led to an increase in production costs,” Mahant said.
Further, the company claims that online accounts as its primary source of sale. For instance, it generates 75% of its sales from Flipkart and the remaining 25% comes from offline merchants. It further stated that it saw a boost in its sales during the festive season sale. “ We have seen consistent positive outcomes in terms of online sales. Now, we’ve ventured into gift packs and plan to establish experience centres in various cities. We have introduced the ‘Retail direct programme,’ under which we have identified 200 key stores in small towns. This involves collaborating with local retailers,” he explained. In tier-3 cities, the company claims to have forged exclusive partnership with retailers and have created shop-in-shop experiences. According to Mahant, to promote these partners, it has used mohalla loudspeakers besides distribution of pamphlets.