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Home-bred Lava International said it has pipped Micromax and Intex to become the largest mobile domestic handset brand in the country in the quarter ended September, with majority of volumes coming from feature phones segment, a claim validated by market research firm Cyber Media Research (CMR).
The brand shipped 7.1 million mobile handsets (including Xolo) during the quarter, as compared to Intex’s 6.96 million handsets and Micromax’s 6.1 million, according to Lava’s internal calculations.
“We have become No 1 in last quarter,” said Hari Om Rai, chairman of Lava International.
“We have been preparing very consistently. While others have come down dramatically, we are very healthy and growing. Despite huge competition, we have done highest volume amongst all Indian brands,” Rai told ET.
The handset brand is aiming 20% handset market share by 2018-end, up from the current 9.5% share. “Smartphone will contribute largely then, however feature phone will still be relevant for us,” he said.
Basis the shipments, Lava claims a 9.5% share in the overall handset market in the third quarter, up from 9.1% in the quarter ended June. Erstwhile leading Indian handset maker Micromax’s September quarter share went down drastically to 8.2%, from 11.8% in previous quarter. Intex’s September quarter share went down to 9.3%, from 9.6% in the same period.
CMR’s principal analyst Faisal Kawoosa said that the research agency’s preliminary numbers were in line with Lava’s numbers.
“Our data suggests Lava as the largest domestic vendor, followed by Intex and Micromax,” he said, adding that Micromax has come down from second spot in the second quarter to fourth in the third quarter.
According to CMR’s data for June quarter, Micromax was the second largest vendor with 13.6% share, followed by Intex at 10.4%, Karbonn at 9.6% and Lava was at 8%. Samsung was the leader with 25.5% share of the overall Indian handset market.
Micromax and Intex declined to comment on ET’s queries.
Lava has been the largest vendor in the feature phone segment since last four quarters, Rai said, adding the company will begin taking the lead in the smartphone segment as well, from June 2017.
The handset vendor is now planning to bring the design ecosystem in India for its handsets, and is currently in talks with a couple of design houses for a potential acquisition, which could be in tune of around $20 million.
“Component ecosystem is getting developed through phased manufacturing plan, and design ecosystem is needed. Therefore we are looking at either acquiring a design house or working with them closely through swapping of shares,” Rai said, adding that talks are in advanced talks with result expected in a month.
Lava is also expecting to get strategic investment worth $100 million within two months’ time. “We have term sheets and everything going on…we are in advanced stages of talks. Whatever investments are coming into the company, we will put that in design and research and development (R&D),” Rai said.
Lava had clocked Rs 7,626 crore in fiscal 2015-16, up 23% from the previous year. It is now expecting a stable 10% growth in revenues by the end of the ongoing fiscal year. “We are looking at fast growth next year onwards due to our increased focus on design and manufacturing,” Rai said.
Lava pips Micromax, Intex in Q3 to become largest domestic brand by volumes, to acquire a design house - ET Telecom
The brand shipped 7.1 million mobile handsets (including Xolo) during the quarter, as compared to Intex’s 6.96 million handsets and Micromax’s 6.1 million, according to Lava’s internal calculations.
“We have become No 1 in last quarter,” said Hari Om Rai, chairman of Lava International.
“We have been preparing very consistently. While others have come down dramatically, we are very healthy and growing. Despite huge competition, we have done highest volume amongst all Indian brands,” Rai told ET.
The handset brand is aiming 20% handset market share by 2018-end, up from the current 9.5% share. “Smartphone will contribute largely then, however feature phone will still be relevant for us,” he said.
Basis the shipments, Lava claims a 9.5% share in the overall handset market in the third quarter, up from 9.1% in the quarter ended June. Erstwhile leading Indian handset maker Micromax’s September quarter share went down drastically to 8.2%, from 11.8% in previous quarter. Intex’s September quarter share went down to 9.3%, from 9.6% in the same period.
CMR’s principal analyst Faisal Kawoosa said that the research agency’s preliminary numbers were in line with Lava’s numbers.
“Our data suggests Lava as the largest domestic vendor, followed by Intex and Micromax,” he said, adding that Micromax has come down from second spot in the second quarter to fourth in the third quarter.
According to CMR’s data for June quarter, Micromax was the second largest vendor with 13.6% share, followed by Intex at 10.4%, Karbonn at 9.6% and Lava was at 8%. Samsung was the leader with 25.5% share of the overall Indian handset market.
Micromax and Intex declined to comment on ET’s queries.
Lava has been the largest vendor in the feature phone segment since last four quarters, Rai said, adding the company will begin taking the lead in the smartphone segment as well, from June 2017.
The handset vendor is now planning to bring the design ecosystem in India for its handsets, and is currently in talks with a couple of design houses for a potential acquisition, which could be in tune of around $20 million.
“Component ecosystem is getting developed through phased manufacturing plan, and design ecosystem is needed. Therefore we are looking at either acquiring a design house or working with them closely through swapping of shares,” Rai said, adding that talks are in advanced talks with result expected in a month.
Lava is also expecting to get strategic investment worth $100 million within two months’ time. “We have term sheets and everything going on…we are in advanced stages of talks. Whatever investments are coming into the company, we will put that in design and research and development (R&D),” Rai said.
Lava had clocked Rs 7,626 crore in fiscal 2015-16, up 23% from the previous year. It is now expecting a stable 10% growth in revenues by the end of the ongoing fiscal year. “We are looking at fast growth next year onwards due to our increased focus on design and manufacturing,” Rai said.
Lava pips Micromax, Intex in Q3 to become largest domestic brand by volumes, to acquire a design house - ET Telecom
