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»Micromax annual revenues cross Rs 10,000 crore in 7 years

Nawin7ST

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KOLKATA/MUMBAI: Seven years old mobile
phone maker, Micromax has crossed Rs 10,000
crore in annual revenues during year to March
2015, and is now within striking distance of one
of the world's largest consumer electronics brand
Sony in the Indian market.
Micromax Informatics grew sales by a whopping
47% in 2014-15 toRs 10,450 crore, while Sony's
Indian unit grew its business 10% with revenue at
Rs 11,010 crore, according to their annual return
filed with the Registrar of Companies (RoC). Two
years ago, Micromax was not even half of Sony in
turnover.
Industry watchers feel Micromax can potentially
edge out Sony this fiscal on the back of online
and 4G smartphones business, even as Sony is
restructuring its smartphone business by exiting
sub-Rs 10,000 segment which will impact growth.
Lack of any sporting event which catalyses
television sales during the year could impact
Sony further.
"Despite smartphone being a bigger market in
India as compared to television, its growth rate is
high too. Micromax will continue to grow at high
double digit pace which might be a challenge for
Sony this year," said the chief executive with a
leading retail chain, requesting anonymity.
While Micromax declined to share growth
projections, its chief executive officer Vineet
Taneja said growth drivers last fiscal were both
smartphone and LED television business, which
will continue this year as well.
"In smartphones, the growth during the second
half will be driven by 4G models which now
account for 30% of our portfolio with 20 models
and will be further strengthened. We also have
around 10% share in LED televisions, which will
continue to grow," Taneja said.
Sony India, however, said growth was impacted
due to its global exit from Vaio laptop business.
"On a like-to-like basis without the laptop
portfolio, our sales growth rate was 22%.
However, this year we expect sales growth may
come down due to absence of any major sporting
event like last year which drives television sales,"
said Sony India's sales head Satish
Padmanabhan.
Padmanabhan also clarified that the exit from
entry level smartphones too is a global strategic
decision which has in fact doubled Sony's
average selling price in India.
"However, the Indian smartphone market has off-
late become extremely competitive and difficult
with entry of so many brands. We are carefully
monitoring it," he said.
As per Counterpoint Research, while Micromax
has increased sales from online, it is now facing
pressure in $50-100 price segment from Intex ,
Lava and others. However, its Yu brand alone is
now selling more smartphones than Xiaomi
online, it said.
Micromax's Taneja seems aware. "If we have to
grow at this pace, we have to gain share which
we will continue to strive, but will also not do
anything for short-term benefit which several of
the brands are now doing," he said.
While Micromax ventured into cellphone business
in 2008 and in smartphones in 2011, its entry into
LED television was as recent as two years ago.
 
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