Due to high barriers on entry of new players, there are limited companies in this sector
SAARC and India Head, Santok Group (Parent company of STK Accessories)
On India Market Penetration:
Encouraged by our dramatic success as leading mobile accessories player in the European markets for over two decades, we have widened our product range locally and further understanding the needs of the Indian consumers. We are quite optimistic about our ventures and are expecting a steady growth for our products. We are also happy about the acceptance our products have been receiving in the Indian markets and this has been reflected in revenue and market figures.
In India, we initially started with Modern Trade and LFR as we are present in reputed chains like TMS, Spice, Reliance, BigC, Sangeetha, Planet M, Big Bazaar, Airtel and online channels as Snapdeal, Flipkart, Shopclues, Amazon.
On Investments:
STK currently has been investing heavily on its advertising and marketing along with the presence on social media, which is also growing by each day. Our aim is to leverage the channel strength. We want to expand both our Retail and Ecommerce strength.
On Government Role:
The opportunity for Make in India is a positive step by the government. The decision of equalizing of Excise Duty and Import Duty is a good initiative.
India should be more focused towards novelty and innovation for all sectors. Also, the government has to chart out plans to give special sops and privileges to sectors so as to make this vision working. Other measures that can be taken up include reducing the interest rates for raw materials and finished products in order to boost manufacturing, for smaller industries that need to import machinery.
On Manufacturing in India:
Shenzhen and Guangdong in China are the places from where large numbers of mobile phone components are being imported. STK Accessories also have an office there for the last 20 years. We also have tie up with all the top suppliers for spare parts for manufacturing.
Yes of course, we will make in India in the near future. The labor is cheaper and it even saves from number of import formalities and legal paper work.
On Growth of your Smartphone Brands:
We have an exclusive range of smartphones for our Indian customers, which will be out in the market in few months. For these smartphones we will tie up with top level online sites and we do expect nearly 50% of growth in the coming financial year.
One Big Challenge for Make in India:
Lack of domestic market access is a major hurdle. Due to high barriers on the entry of new players, there are limited companies in this industry, which in turn limits skill development. This keeps domestic companies from competing with larger players, both in India and globally. Even high cost of working capital is an issue. Unlike foreign players, the Indian firms did not get any R&D incentives or soft loans for product development and their cost of working capital is very high. Also, the infrastructure has to be looked into as bad quality of working conditions directly affects the manpower for manufacturing.
Readiness for Wrestling Market Share:
China has always been a major player in the mobile manufacturing business and yes of course they will eye the Indian market as it is large in size and is growing further each day. Everyone who provides a good preposition and is competitive in pricing is bound to do well and so are we. Competition is important as it leads to the growth. Hence everyone should be free to participate in the market as the one with good quality and excellent service will always overtake.
x-krishnam@cybermedia.co.in