India’s Q1 smartphone sales point to $45 bn mkt in FY25
The firm on Monday announced the acquisition of ARMC IVF, a chain of fertility centres based out of Kerala.
Udaipur-based Indira IVF, one of the biggest fertility chains in the country, is also eyeing a big opportunity, and has been increasing its capital expenditure to expand its presence.“Over the next
THERE are around 30 million couples requiring IVF, but only 1-2% actually seek treatment
five years, with a budget of ₹900 crore, we aim to expand both internationally and in India through merger and acquisitions, as well as partnerships,” Kshitiz Murdia, co-founder and chief executive, Indira IVF, said in an interview. It has 130 centres at present, and is set to build its network in tier II and III cities.
“In India, our goal is to increase our fertility centres to 300 within the next three years and establish 30-35 mother and child care hospitals over five years, The upcoming centre in Pune, will be commissioned within three months,” added Murdia. The firm is also planing to expand its presence in overseas markets
INDIAN firms are eyeing
and acquisitions 50% is unorganized; while organized mkt include corporate hospitals as well as fertility chains
with 15-20 new centres. “We will be opening 7-8 fertility centres, each, in Nepal and Bangladesh, besides exploring opportunities in other South Asian countries, as well as Africa.”
Recently, Nova IVF Fertility had also announced its plans to add 32 centres in India by the end of this year, from around 62 at present. The company had acquired Wings IVF, an IVF chain based in Ahmedabad, last year.
Shobhit Agarwal, chief executive, Nova IVF, said: “In both rural and urban settings, the demand for IVF services is shaped by unique yet converging factors. Urban areas witnessed increasing infertility rates due to lifestyle changes, delayed parenthood, and environmental factors. while rural people often face limited access to fertility specialists. “We have half the centers across tier 2 regions, and entered Guwahati, Agra, Erode, Warangal and Bareilly. We have been growing at 32% CAGR and plan to grow 40% in FY25,” he added.
The IVF industry is intensely competitive with specialized firms as well as multi-specialty hospital chains offering services, alongside unorganized players. Though 50% of the market is unorganized play, the organized market has three segments—chains focusing only on fertility issues; corporate hospital chains offering fertility services; and single, large doctor practices.
In 2023, the government had implemented stricter regulations for assisted reproductive technology, which is used to address infertility via IVF. The move was aimed at addressing the proliferation of illegal IVF centres, and curb illicit procedures, to safeguard unsuspecting couples from exploitation. All stakeholders in the field encounter considerable obstacles due to lack of awareness and societal stigma surrounding fertility issues, said experts. Affordability also remains a significant challenge for the industry, they added.
However, Insurance Regulatory and Development Authority’s mandated in 2023 for comprehensive coverage for all intending parents, and surrogate mothers who were undergoing fertility treatments has been a positive.
After enduring two consecutive years of a decline, India, the world's second-largest smartphone market, is showing signs of a recovery.
The first quarter of the year has ushered in a wave of optimism, signalling a resurgence for brands, such as Samsung, Xiaomi and Vivo, with the industry witnessing an impressive 18% rise in market value, soaring to $9.5 billion— the highest first-quarter revenue in the past five years.
Despite the first quarter of a fiscal year being a relatively subdued period for sales historically, a consensus poll of four industry analysts by project a robust growth trajectory for the full year.
Forecasts indicate a potential 15% revenue surge, breaching the $45 billion mark in FY25, compared to $39 billion in the previous fiscal year. Interestingly, this bullish outlook is despite the market volumes, which is expected to remain flat compared to 2023 levels, with projections hovering at 151-155 million units.
On Thursday, Counterpoint India said in a report that smartphone sales recorded an 8% growth from a year earlier, with shipments likely surpassing 33.5 million units. While this marks an improvement over last year, it falls short of the market's post-pandemic highs.
The driving force behind this revival is the rise in average selling prices (ASPs) of smartphones. As per Mint’s analysis, the ASP stands at $295, or around ₹24,600—up 20% in the past two years. This trend, hints at a premiumization of India's smartphone market, after enduring eight consecutive quarters of stagnation.
Samsung, for instance, achieved its highest-ever ASP in India in Q4 FY24, reaching $425 (₹35,500). Despite ranking third in terms of volumes, the Korean firm claimed the top spot in overall market value, capturing 25% of the $9.5 billion revenue generated during this period.
Meanwhile, Apple, which does not rank in the top five in sales volumes, secured the second spot in revenue share, with a 19% share.
Email queries to Apple, Samsung and Xiaomi did not elicit any response till press time.
Pundits attributed this resurgence to a combination of factors, including lucrative financing schemes, lack of compelling offerings in the low-price segments, increasing disposable incomes, and a strategic shift towards high-margin market strategies by leading brands.
As per Mint’s analysis, smartphones priced under ₹15,000 yielded a modest 4% margin for retailers. In contrast, devices priced above ₹25,000 witnessed margins of 8%, potentially rising to 10% with brand incentives—a testament to the allure of premiumization driving India's smartphone renaissance.
“Brands are bringing along a heavy push for internal financing options, targeting users in tier-II cities, and beyond—even for those who do not have an existing credit line or cards. Internal financing options at zero interest are piquing users’ interests, which are in turn, pushing users to buy more expensive devices,” said Shubham Singh, research analyst, Counterpoint Research.
The margin dynamics add an interesting dimension to the narrative. With quarterly revenue surging to $9.5 billion, and ASPs on the rise, retailers and brands alike stand to benefit from higher profit margins on smartphone sales. Manish Khatri, a partner at Mumbai-based multi-brand electronics retailer Mahesh Telecom, echoed similar views, following the uptick in smartphone demand during the first quarter.
As per Mint's analysis, devices priced above ₹25,000 saw margins of 8-10% with incentives from brands