In an interview with ET, Sharma says the company is also planning to launch 4-G enabled handsets by December 2014 and a Windows phone next year. Excerpts:
Do you think Nokia's sale to Microsoft has had any impact on players like yourself? Are you planning to make Windows smartphones sometime in the future?
It has been good for us because they have chosen to stick to the Windows operating system. Had they chosen Android, it would have been a threat for us. But now we're certain that they will not look at Android, which means lesser competition for us. We are working on a Windows phone and you might see something from us around mid of next year.
Globally, and in India, LTE that allows ultra high-speed internet is catching up fast. However, the ecosystem around devices has not developed at all. We see some handset makers looking at LTE devices, but what are your plans?
We want to establish ourselves on LTE and offer products that are LTE ready by December, so that consumers would not need to change their handsets whenever voice over LTE becomes available, be it six months or eight months later.
What are your thoughts about manufacturing handsets in India? What challenges do you face for indigenous production?
We've already put up a big factory in Rudrapur from where we're manufacturing and assembling tablets and televisions. I want to take mobile phones out there. We've created space for this purpose, so that we're the first ones to start manufacturing when the conditions are right.
Our internal target is to double sales (production) to around 50 million by next year since we're going global. Within 12- 18 months you should see some action from our side (in local manufacturing). But at the moment, I have to import everything right from chipset, fab, memory to screen. The government should give benefits that encourage companies like us that have massive scale now.
Where does Micromax plan to go next after establishing itself in India? Have you thought of tapping the developed markets which are more open to unlocked phone makers than before?
After worldwide adoption of Android, our aspiration is to become a global player. We've tested waters in Bangladesh, Sri Lanka and Nepal, where we are in the top 3 players by overall sales. India has not seen a global player from hardware, that's our ambition.
We're launching in Russia by December, where more than 1 million smartphones are being sold a month. Success in Russia will open doors to Eastern Europe, countries like Romania. We're also exploring Pakistan, which is similar to India and automobile makers have tasted success there.
The end goal is to finish in the US and do something around the Superbowl, maybe next year. Markets in these geographies are changing with unlocked phones becoming more popular. In the UK for instance, the share between locked and unlocked phones is 50:50 now.
What kind of growth are you expecting by the end of the fiscal? Are you thinking of an IPO now? What about acquiring a local player?
Last year, we closed our sales at Rs 3,168 crore. Within six months of this fiscal, we've crossed this number and we're on the way to double this by the end of the financial year. Right now, the situation is quite uncertain for an IPO. It makes sense for us to acquire a player in software, not in hardware.
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