Videocon bets on brand for mobiles’ growth

The company aims to increase its south market share from 3-4 per cent to over 10 per cent in the next one year.

April 08, 2016 11:06 pm | Updated 11:06 pm IST - CHENNAI

: Videocon, a leading domestic consumer electronics and durables group, plans to achieve market share growth in its mobile handset business in the near term. This goal is expected to be reached by its own electronic manufacturing edge on the back of gaining prominence of its local manufacturing model in the mobile handset business, its established brand name and a range of new products.

It has embarked on backward integration process in its manufacturing operations in a bid to be more-competitive in mobile handset business.

“We are planning to earmark 10 out of our 17 factories, which presently make a range of other consumer products, to produce more mobile handsets. We have already started producing mobile devices in seven factories across the country,” Jerold Chagas Pereira, Business Head, Mobile Phones Division, Videocon said here.

Videocon sees strong growth potential in the crowded Indian mobile-handset market on the back of growing challenges for many existing companies who just rely on imports to grow their business in the country.

“Increasing duties for imports, strengthening of U.S. dollar and tightening of regulations and certifications will pose big challenges for the incumbents to sustain their growth just with import-model.

“In our case, we already have well-established electronic manufacturing capabilities that could be deployed for mobile handset production. Also, with established brand name across small cities and towns, which are future growth centres for smartphones, we hope to grow aggressively in mobile market,” said Mr.Pereira.

Meanwhile, the company, sees the five states in southern market, comprising Tamil Nadu, Karnataka, Andhra Pradesh, Telengana and Kerala, as a fast-growing region for its mobile business. The company claims a market share of about 3-4 per cent in the south and is aiming to increase it to more than 10 per cent by the end of next fiscal.

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