‘We have made significant investments in setting up a robust distribution network’

CEO, Spice Mobility

On India Market Penetration:

The mobile handset sector has grown tremendously in recent years and has already seen rising demands and growing competition owing to the entry of many newcomers in the sector. The coming year will be significant owing to the newer technologies and path-breaking innovations in the sector. We have a strong focus on Indian markets and have developed a wide product portfolio to cater to this market segment with unique offerings in the feature and smartphone segment. We have also invested in creating a robust distribution network in these markets to expand our reach to end consumers in the last few years.

Through intensive market research, we have found that a majority of consumers in Tier 2 and 3 cites are still using feature phones, keeping this in mind we have introduced several entry level smartphones in the last year, with excellent technical features at budget friendly prices.

On Investments:

Keeping in line with our strategy to enhance our presence in these markets, we have made significant investments in setting up a robust distribution network, expansive retail channels including manpower hiring, logistics, marketing and product development. In order to develop the right product for these markets, we conduct intensive market research to understand key consumer insights and thereafter developed a comprehensive product portfolio specifically for rural and upcountry consumers. We plan to invest up to Rs 500 crore over a period of time to set up a local manufacturing unit for mobile phones.

On Government Role:

With the growing popularity of mobile internet and availability of low cost smartphones, mobile phones have further penetrated the country especially in Tier II and Tier III cities. The ‘Make in India’ campaign will help the vertical bloom by attracting investment bids and the industry will benefit significantly from a local manufacturing policy.

Keeping these perspectives in mind, the government should focus on improving the overall investment sentiment in the country by improving infrastructure facilities by creating mobile manufacturing hubs with complete manufacturing ecosystem, supporting small and medium-sized businesses with capital lending and incentivize local manufacturing through attractive taxation structures such as GST and lowering interest rates for corporate clients.

On Manufacturing in India:

Currently, we don’t have a domestic manufacturing set up and get our products imported from several countries abroad. The complete handset is imported from the vendors including mobile accessories. We have a network of best-in-class vendors for our products, who also supply products to other reputed mobile brands worldwide and we have very strict vendor evaluation and assessment procedures to ensure quality control. As a domestic brand, the company plans to focus on entry segment mobile products to target the Tier II and III Markets. We have partnered with Videocon Industries to make feature and smartphones out of the latter’s Aurangabad manufacturing facility.

A local manufacturing unit will bolster the company’s strategy to introduce affordable mobile internet devices in India, thus catering to a larger market by offering best technology at most affordable prices. Local production of components will further improve cost efficiencies for manufacturers, however, it is contingent to the development of a high quality and reliable component manufacturing ecosystem in the country. Once the overall manufacturing volumes for mobile phones in the country will increase, the component manufacturers will also find it viable to set up a local manufacturing set up.

Growth for Your Smartphone Brands:

With entry of several multinational and homegrown companies in last few years, the Indian mobile handset market has become quite competitive, thus offering Indian customers a wide range of options in smartphones ranging from budget to premium. But the mid premium segment of the market is still dominated by domestic players. This segment presents a significant market opportunity with feature