Intex to invest 800 Cr. – Make in India wave continues in Telecom Sector
“We will invest Rs 350 crore to strengthen customer service and increase retail points, Rs 250 crore towards marketing, Rs 100 crore in R&D. We will also invest Rs 200 crore to increase our manufacturing capacity,” Keshav Bansal, director-marketing at Intex Technologies, told ET.
The company plans to invest Rs 500 crore in the next three to four years to make smartphones in the country, which will be separate from this year’s investment. Currently, Intex is in discussions with three state governments Rajasthan, Uttar Pradesh and Uttarakhand to finalise the location of its plant, Bansal said, adding that the company is simultaneously talking to its Chinese partners and chipset vendors for the upcoming smartphone facility.
The company has two manufacturing facilities in Jammu and one unit in Baddi, Himachal Pradesh, which are being used to produce mobile batteries, chargers, multimedia speakers and feature phones.
With the investment, the company is looking to curb its dependence on China for feature phones. However, it will continue its focus on smartphones. “We are expecting our smartphone sales to contribute 50% towards the overall handset sales by December.”
>At the end of the third quarter 2014 (July to September), the company had sold 3 million feature phones and 1.1 million smartphones. According to IDC, Samsung leads the market with 24% sales, followed by Micromax (20%) and Lava (8%). Intex had 3-4% market share during the same quarter, which it wants to increase to 10% by December 2015.
Intex Technologies is expecting to close the ongoing financial year at Rs 4,000 crore revenue, which it wants to increase to Rs 6,000 crore in 2015-16. Bansal said that the company would also increase its presence in the online space and is in talks with ecommerce players to launch exclusive online-only smartphones.