Micromax sets aside big budget for consumer durables segment

Micromax Informatics, the mobile phone maker company from Gurugram has decided to invest up to Rs 600 crore over the next three years in a bid to turn into a consumer electronics company.

The company, which was founded in 2000, expects that its consumer durable products would make up about a fourth of its total revenue over the coming three years, with products ranging from washing machines to new range of air conditioners and televisions.

It was in 2013 that Micromax had ventured into consumer durables, prior to which it only dealt in mobiles.

With a huge budget kept aside, the company aims to join the leaders of air conditioner market, regardless of the stiff competition.

Also read: You Can Now Switch On/Off Your AC And Open Your Home-lock With One Mobile App!

"Our strategy of connected devices under the broader view of being a consumer electronics company will take a step up with new air conditioner models and then with washing machines," Rohan Agarwal, VP (Consumer Electronics Business) told ET. "We will invest abut '200 crore every year to build the channel and service," he added.

One aspect in which the company aims to differ from its rivals is the after sales service, for which it has introduced the Micromax Home Assist application. It allows its AC and TV consumers get after sales service from over 400 centres spread across the country.

In the coming three years, the company has plans of getting 60 to 65% of its business from mobile phones, 25% from consumer durables and the remaining from international markets such as Russia, where it has plans to launch its LED televisions.

The Russian market has already accepted the brand and Micromax is among its top three smartphone players.

Also read: Micromax aspires to enter the Chinese mobile market by next year

As of now, there are 4,000 Micromax sales points, and there are plans to increase the number to 10- to 12,000 in two years. Other than that, the products will also be available on leading e-commerce websites.

(Image source: GadgetsToUse)