In a year’s time, Intex Technologies, the Rs. 4,000 crores Indian smartphone, consumer durables, and IT products manufacturer aims to manufacture an entire line of mobile phones, including components, in India. Intex Technologies, an Indian smartphone, consumer durables, and IT accessories manufacturer, has been in operation in India since 2001. Particularly in the last three years, it has recorded a CAGR of 69 percent and captured an overall mobile market share of 12 percent (as per IDC reports), driven by a culmination of product innovation, designing a strong service, distribution, and marketing strategy, and strengthening its retail presence across more than 50 cities in India.
Today, while the mobile division remains its key growth driver, the CDIT business too has contributed to the company’s top line, and IT products, the oldest category in the Intex portfolio, remain its mainstay. The company, which expanded its consumer durables portfolio with the sale of a few thousand LED TVs in its first year of operations, today boasts a sale of a couple of lakh units per annum, with an annual growth of 150 percent since. Particularly on the lines of Make in India, the company has four manufacturing units in India, across Jammu, Baddi, Himachal Pradesh, and Noida.
To further consolidate operations, Intex has already begun the process of manufacturing components used in mobile phones and developing an entire ecosystem of ancillary units feeding the main unit. By mid of 2016, it will see up to 30 percent to 40 percent of components used in the production of mobile phones, manufactured in India through technical JVs. The target is to manufacture the complete unit of mobile phones including components in India in a year’s time.
This year, it also plans to expand its wearable product range along with 4G/LTE & VOLTE enabled smartphones. Moreover, diversifying from the consumer electronic business, Intex has this year entered into the sports arena, having successfully bought an IPL Team, later rechristened as Gujarat Lions. Alongside its plans to establish a global presence and increase product offerings locally, Keshav Bansal, the director of Intex Technologies, shares his views on how the Make in India campaign is impacting the business, and how it can boost the manufacturing sector in India.
Two key impacts of this initiative are the creation of jobs for millions of Indian youth and reducing the huge imports of electronic goods, which are second to oil imports and have the potential to become the biggest import item for India. The mobile industry would benefit from the declining cost of manufacturing as the availability of labor would ride on creating goods at a lower price and in general, local manufacturing will help Indian manufacturers have complete control over product innovation, designing, customization, and the overall manufacturing process.
To ensure its sustenance, the government should create, encourage and facilitate an environment that incubates a complete mobile ecosystem that includes building a domestic component manufacturing and designing platform, and combining India development with Digital India and Skill India to not only give impetus to manufacturing but to also drive overall economic growth. While global component manufacturers and smartphone brands have begun the process of setting up shops in India, the Government has also taken several initiatives to sustain this inflow.
Having said this, the Indian Government must set up eco-friendly and world-class infrastructure, subsidize land rates, encourage high-tech imports for technology, and give a boost to R&D, which has slackened in recent months.
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