The Hindu : Munoth unveils Swadeshi brand of cell phones

Online edition of India's National Newspaper
Sunday, Mar 23, 2003

Business

Business

Munoth unveils Swadeshi brand of cell phones

By Our Special Correspondent

CHENNAI MARCH 22. The Chennai-based Munoth Industries Ltd. is bracing to enter the burgeoning mobile phone market with its Swadeshi brand of products outsourced from South Korea. Consequently, the nascent Indian mobile phone industry is set to see a swadeshi brand, V. K. Munoth, jostling for market share with videshi products.

The company, distributing Siemens brand of mobile phones for the last three years, will initially launch three models, VG107, CG107 and VG207, of its brand through 2,000 dealers across 50 cities. These come with an array of features. These GSM (global system for mobile communication) handsets are tailor-made to suit the Indian requirements and manufactured for Munoth Industries by the Seoul-based V. K. Corporation.

The maximum retail price (MRP) of VG107 and CG107 will be Rs. 12,900 and VG207 Rs. 18,500. At present, mobile phones attract an effective import duty of 14.4 per cent. The V. K. Munoth brand of products will have biorhythm check that facilitates a graphic read-out of one's physical, emotional or intellectual quotient on any given day and compatibility with a friend.

Jaswant Munoth, Managing Director, Munoth Industries, said the company had already imported 10,000 pieces. In the first three months, he estimated the import to be about 10,000-15,000 pieces. He indicated that the company would strive to introduce two models every month from the third month of the launch.

To a question, he said Siemens was informed of its decision to sell local brand of mobile handsets. Munoth Industries, he said, would continue to distribute Siemens' products.

Quizzed if his company would get into making mobile phones locally, Mr. Munoth hinted that it could take up assembling of the mobile phones six months hence.

Munoth Industries, a closely held company, is set to clock a turnover of Rs. 25-30 crores in 2002-03. With the launch of its own brand of mobile phones, he expected the company to scale a sales turnover of around Rs. 100 crores in the coming year. It would spend Rs. 2 crores in the first month on marketing. He hinted that in the first there months, the campaign would be aggressive and cover the whole spectrum of the marketing medium.

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