Micromax is on a roll and while the company has shaken the mobile handset market with its price strategy, the real challenge is still to come – i.e. gaining market share in high end phones.
The company has sold minority stake to three investors – Sequoia Capital, Sandstone Capital and Madison Capital Management, valuing the group to more than 440 million dollars.
Micromax is planning for IPO in 2012 and earlier raised Rs. 225 Crores from TA Associates, a PE firm. As per ET, the company posted revenues of Rs 1,600 crore and a net profit of Rs 150 crore in 2009-10.
A Few Facts About Micromax
- 80% of sales happen in rural India.
- The company claims to sell 1 million phones a month (45,000 retail points in 120 cities across India)
- Was one of the first companies to introduce handsets with 30 days battery backup, DUAL SIM and handsets switching networks (i.e. GSM-CDMA)
–
Have you tried a Micomax phone? What’s your take?
Also see : Bharti Enters Mobile Phones Business, More Feature Phones Your Way
I bought a Micromax Q1 phone a week ago. It cost me Rs.1428/- and for that price, I would say it gives the best value for money. The phone’s decent enough and I believe that it was designed keeping India-specific requirements in mind. However, as the article points out, the interesting phase would start now – gaining share in the mid and high range market. Because as the price goes up, people’s expectation of quality multiplies. I might be happy with the phone when I pay 1500 but I expect a lot more (finish, feel, look, etc) when I pay, say 10000.
I have a Q3 which I purchased for 4500. After 10-11 months of usage, I am getting poor voice quality and regular call drops (my carrier hasn’t changed). Battery backup used to be 2-3 days, now it is barely 1 day (at max). Same problems with 1 other person I know.
Sorry Micromax. But never again!
Mahenga roe ek bar, sasta roe bar bar (translates: One who buys a costly product cries once, but one who buys cheap, cries time and again)