Micromax will start manufacturing its devices in India from next year, according to this PTI report. The company has started assembling its devices in the Rudrapur plant, employing over 400 people on a trial basis. Micromax currently imports devices from China, where it has tie-ups with manufacturers such as Foxconn.
Part of the policy
Indian government has been encouraging domestic companies to start manufacturing electronics goods within the country instead of importing them and had approved National Policy on Electronics last year. As part of the first stage of this process, India has already started manufacturing set-top boxes domestically rather than importing them. Tablets and smartphones are next in line for domestic manufacturing as per the policy and the move by Micromax may very well be part of it.
India had also approved the setting up for two semiconductor fabs earlier this year. The government is offering incentives such as return of some state and federal taxes to companies that are setting up their manufacturing plant in the country.
Micromax had earlier announced that it will start selling its devices in Russia in December and they had tied up with Russian search engine Yandex for apps too. The company had roped in Hollywood star Hugh Jackman as its brand ambassador earlier this year, hinting at its plans to take the brand global. Micromax Co-Founder Rahul Sharma had said that their end goal was to go global as an Indian hardware brand. Micromax currently has 23% smartphone market share in India, just behind the market leader Samsung. The company had shipped 2 million units in Q2 alone, thanks to the strong performance of its Canvas series.
Sharma had also said that its aiming for a turnover of more than Rs 6,000 crore by the end of the current financial year. “We closed last year at about Rs 3,168 crore and we are looking to double that this financial year. We are on track to be a billion dollar company by FY 14,” Sharma said.
Micromax has been selling its phones in Bangladesh and Sri Lanka and is currently among the top three phone brands in both the markets.The company believes that they will be able to expand its operations to the rest of Europe if they crack the Russian market.