March 10: Micromax Informatics Ltd, one of the leading handset makers, is all set to expand its consumer durables line up. With the expansion, the company aims to stabilize its declining revenues in order to keep up with the Chinese handset makers who pose tough competition in the market.
By financial year 2018-19, the company, which is attempting to place itself as a diversified consumer electronics company, targets 30 percent of its revenue from various other categories of its products.
News reports quoted Rajesh Agarwal, co- founder, Micromax, as saying that the revenues from these categories are expected to cover 20 percent of the overall revenue. The company expects revenue of around Rs 2,000 crore from the consumer electronics category by the year 2020. Apart from smart phones, the company presently sells air conditioners and televisions. The company is all set to launch washing machines and refrigerators soon.
As per the records with the Registrar of Companies, Micromax’s revenue for the financial year that ended on March 31, 2017, was reported to be Rs 5,614 crore. This record showed a drop of revenue of around 40 percent from the previous year.
Even though Agarwal hinted at an additional decline in the revenue, he did not reveal the exact numbers. He added that in the consumer electronics segment, the company is likely to make revenue of Rs 1,100-1,200 crore for the fiscal 2017-18.
Chinese phone makers like Xiaomi, Vivo, Oppo and Gionee have flooded the Indian smartphone market with reliable handsets. The advent of the Chinese smartphones gave a tough competition to the Indian handset manufacturer bankrolled by Sequoia Capital, TA Associates and Sandstone Capital.
Stating that the company is confident in placing themselves as a huge consumer electronics company Agarwal said that the in the refrigerator and washing machine segment the company targets to acquire 5 percent market share in the first year and about 7 percent in the upcoming 24 months.