Micromax makes major moves

Gears up for aggressive expansion of products and services in Sri Lanka

By Cheranka Mendis

India’s third largest mobile manufacturer and the largest Indian domestic mobile handset company, Micromax Mobile is planning to aggressively expand its products and services in Sri Lanka following the success of its operations.

Micromax, which entered the local market in June last year coinciding with the International Indian Film Academy (IIFA) Weekend, has surpassed most of its sales targets in 2010. General Manager Sales of Micromax Vikas Sahni speaking to Daily FT stated that with a high selling rate, Micromax had now positioned itself between the number two and three positions of the highest monthly mobile selling brand in Sri Lanka.

On the verge of launching an Initial Public Offering in India, the company was all hush-hush about future plans for Sri Lanka. Sahni however claimed that Sri Lanka had been a good market so far with a high response level.

“Sri Lanka is a good market to look at. The response we have received is very high and we are now looking at introducing products especially for the Sri Lankan market,” Sahni said. Products aiming at rural Sri Lanka are now being developed, he said.

Within less than a year, Micromax has not only reached rural areas in Sri Lanka but has also placed itself in the emerging north and east market. Within a short period of time, Micromax believes it could gain the number one position in mobile sales in the north and east.

The company has presently launched 44 distinct mobile models in India. In Sri Lanka, the company started by introducing eight models, which includes the X100, X360, X280, X2i+, Q5, NQ55 and G Phone. The plan is to have an approximate of 12 to 14 models, which Sahni says is the perfect stable balance for a new market.

The price range of the existing phones is between Rs. 2,990 and Rs. 14,990.

He asserted that being a new market, a considerable sum had been put in as investment but that with the positive outlook, more investment would be put in place for newer products and expansions within the next few years. “We are strategically placed to connect Sri Lanka.”

He, along with his team, is now aggressively looking at the distribution of smart phones in the country. A recent survey has indicated that smart phones are the future of the telecommunication system. “We believe that we differentiate ourselves from our competitors through innovation and design, use of advanced technologies and understanding the rapidly changing consumer market,” Sahni asserted.

“We are not here to snatch a market share from any brand; we are here for the customers. We are not here to engage in a price war. We are here to deliver value for money. We may or may not be the cheapest but we are here offering innovation in choice for the customers,” Sahni said.

The winning point of Micromax Mobile is innovation, value for money and the one year warranty on the phone and accessories. This, he says, is a first in Sri Lanka which adds comfort and quality together. He stated that even though price strategy was a good way of winning over the customers, in the long run it was product strategy that counted.

Micromax has its products in India, Sri Lanka, Nepal, Bangladesh, and Middle East. It will be launching in Latin America in February.