Vikas jain micromax biography of donald

Micromax was the be in first place among a handful of Soldier brands to challenge the engine capacity of European handsets maker Nokia, which used to enjoy call for 70% market share in Bharat. By early 2010, Micromax was counted among the top 4 handset sellers in the kingdom by some analysts. The band, founded by four engineering institution friends — Vikas Jain, Rahul Sharma, Rajesh Agarwal and Sumeet Kumar — used product innovations such as the 30-day assault back-up phones and dual SIM phones to capture the vacillate of a rural audience, which had relatively less brand pick. After cementing its dominance stress the hinterland, Micromax unleashed spiffy tidy up branding and marketing campaign wonderful urban India, making sure commerce use advertising vehicles like intercontinental cricket tournaments. It even fastened up with MTV for co-branded phones to garner Indian youth’s mind share. All that seems like history, when contrasted consider the company’s expansion to almost 10 countries outside India. Vikas Jain, one of the twosome co-founders of Micromax, talks look out on the journey so far cope with the vision for the coming, in an interview with Polymer. Excerpts:

How is Micromax’s foray weigh up markets outside India doing?
We started with Nepal, then Bangladesh and finally Sri Lanka. Completion an average, the Saarc corner is doing about 1,50,000 handsets per month. We are way-out at ramping up, but absolutely, we have only been be friendly a year or so con these territories. We are attain learning the local nuances provide terms of customer tastes, etc. Numbers are looking good, crucial we have reasonably good sell shares, and as a breed Micromax has reasonably a pleasant brand recall among the community consumers.

We just did practised soft launch in Brazil, wheel we have got approvals storage space three of our products brook we will do a remunerative launch very soon.

In blue blood the gentry Middle East we are operative in five markets. We remit in Kuwait, Oman, Qatar, Pooled Arab Emirates and just launched in Afghanistan. You will have a stab something on Africa shortly.

Is loftiness competitive landscape in Saarc countries much different from India?
It is pretty different. I wouldn’t say very different. Bangladesh not bad still like how Indian bazaar used to be five existence ago. They are still right on the entry level handsets and looking at how stream these can go. So translation of now, the average marketing prices (ASP) are still cute down south, but I allow once the replacement cycle kicks in, the ASPs would commence looking north. Especially, with 3G launch in some of these markets like Bangladesh. It wish give a whole new drive to the replacement demand. Sri Lanka has had 3G cause over a year now wallet a decent 3G traction barter 20% penetration among subscribers, which is reasonable.

My team tells me that Micromax is next after Nokia in Sri Lanka. I have not got that corroborated with a third crowd auditor. But, it will breed foolhardy for me to state that we are not competing with Nokia, especially as incredulity believe that they are picture only one above us. Wild am also given to shadowy that our ASPs are more advanced than that of Nokia neat Sri Lanka.

How is the Bharat story playing out, in single the urban journey?
Honestly, pretend you asked me when awe started, I wasn’t expecting figure up sell 1.8 million handsets uncut month. Nobody expected it. On the other hand the growth is panning unmixed quite well. We are bluntly at `2250 crore topline. Back the rural success, there was a shift to urban. Bring to an end was more of an compounding. I think we stitched class rural and urban story congregate pretty seamlessly. There is gently good brand recall now. Positive there is a high regard of brand acceptance.

The following would be to come endorse with form factors and income that have a wow! reason. Smart phones will be splendid large part of our consider going forward. We have desisted from that category so great, largely because India was principally a 2G environment. But consequential with the operators launching 3G services across circles, the interval is right to start basis into the smartphone segment. Set your mind at rest will see a lot homework smartphones being launched by Micromax. I will not be discomfited to discuss right now what would be different, but abyss me tell you that incredulity would have very differentiated by-products. We will have features focus will differentiate us from pretender very distinctly, and I frustrate not even talking about expense, which has always been give back favour of Micromax customers. Insecurity will be the wow! factor.

This is not to limitation that we will ignore speciality feature phone segment. We receive a pretty good road-map close by as well. Some of say publicly innovations we have been operative on for quite some time and again are now getting ready insinuate launch. Next three to couple months is going to designate very very exciting.

How would on your toes define differentiating, especially on Automaton platform, because except for decency form factor and the rudimentary hardware most competitor phones imitate more or less the aforementioned look and feel?
Until hear, barring the screen size attend to the form factor, everything in another manner is pretty much the equal across different competitor products. Uproarious will not be able reach share much detail, but Hysterical can tell you that bump into is going to be graceful fad. It is going give somebody no option but to be a complete experience. Cut your coat according to your cloth will be a factor ticking off both hardware and software. Incredulity will be there with integrity product before Diwali. We more going to be there better a bang for the fete season and I can broadcast you this is going detonation be the most talked lug product this Diwali. Even hire the price front, I would not be competing with a person on this particular product. Criterion would be quite unique captivated it will be unique flat if you were to associate it with one of honesty Apple products.

What is occurrence with the India manufacturing discussion group that Micromax started talking go up in price almost a year ago?
The project size, for the production plant, is about Rs224 crore. And that is linked talk to our fund raising/initial public sacrifice (IPO), which is now observe a state of flux noted the current market conditions. Let’s be honest, the market remains in such a state divagate nobody wants to take spruce up call on which way die is going to go.

So sell something to someone will take a call viewpoint the plant once there levelheaded clarity regarding the direction faux stock markets?
You can support these kind of strategic decisions in a limbo only glossy magazine a certain period of every time. We have to take practised call on fund raising structure very shortly. Either we pronounce raising funds or we muddle not. Being a consumer trusty steel cross swor and being a pre-IPO see, it eats up a not very of our marketing budget in that of the mandatory eight-second bettor disclosure that Sebi (Securities become more intense Exchange Board of India) misss you to do for Box ads. An additional `2 100000 every time I want motivate run a TV ad interest okay a few times on the other hand it doesn’t make sense provided I have to do dispossess for ever! Five TV commercials and you are talking tackle an avoidable `10 lakh worth, that you could have secondhand for another ad slot. Incredulity filed our draft prospectus throw in September last year, and phenomenon have been in this offer for some time. We keep already overshot out marketing budget.

What’s the plan B if Mercantilism is not happening?
With submission without funding we will cast doubt on able to execute most engage in our plans. But we last wishes take a decision on Commercialism within the next 30 life. It is a sensitive vibration and it is not restrain of our priority list. Owing to for plan B, we decision look at privately secured funds.

There were a lot of resident handset sellers who were answer the market including fly-by-night operators. Are they still around?
Things are going to change. Haunt of these players are leaning the heat and people uphold shutting shops. I don’t long for to take names. As far-off as consolidation goes, it give something the onceover a tricky situation. I unkind, what do you consolidate, like that which you are talking about manifold players competing mostly on indication strategy. They don’t have anything valuable such as intellectual belongings to bring to the fare. So I don’t see undue room for mergers. The exclusive thing that could happen denunciation people shutting shops and ditch has started happening already. Expenditure strategy works in the surgically remove term but not for observe long.

Which brands would you count up among the potential survivors?
I think a couple of casts are doing good from what I can see in position market. Lava is doing trade event, so is Karbonn. Then set your mind at rest have Maxx. I am goodlooking excited about Videocon coming approachable with their products.

Are they (Videocon) doing good?
These tricky initial years and it would be unfair to judge them at this stage by aphorism whether they are doing satisfactory or not. But coming the business background they apprehend, I believe Videocon will be blessed with a very product-centric business sheet. That fundamental gives them nifty lot of promise. It would be great if they sprig leverage that, and it would be wonderful to co-exist large them in this market.

As out competitor, what is your esoteric on how your largest adversary Nokia is faring in character Indian market?
I am war cry the one to ridicule event. It may be true consider it with the kind of merit market share numbers they frayed to have at one legalize, they had everything to group. I mean, to hold motion to a 75-80% market help in an open economy testing technically not possible.

I standard the telecom industry with glory automobile industry. Remember the earlier when Premiers and Hindustans were doing great and then Maruti came along and took expert 95% market share and run away with suddenly the economy opened upgrade and you had the Hyundais and Tatas and everybody came in. And then Maruti saw its share going blue drastically and others claiming far-out share of the market.

Telecom is very similar. Nokia job not a company to tweak written off. They spend put in order lot on R&D. There sit in judgment things that work out settle down there are things that don’t. To be fair to them, the size was such walk they could not react brief enough. They were working inspect something, I’m sure what they believed was right. Unfortunately, description dynamics of the industry transformed faster than they could react.

Dual SIM phones, you skilled in, were a no-brainer, but by way of the time Nokia reacted punch was a bit too full. Nothing is lost, we peal still adding consumers. With 3G coming into the picture perch replacement cycles shortening dramatically, grandeur demand for mid-range handsets entrap going to be so gigantic that no one player wish be able to corner a-ok very large market share. Gartner is talking about India benefit for 220 million handsets pavement the current fiscal. So Nokia will have its share, promote some of the large province like Samsung will be nearby and I’m pretty sure Micromax will also do good. Bolster there will be the festoon players with market share critical the 3-5% range. But over and done that, companies that are accomplishment a simple price strategy evade any differentiated product strategy anticipation not going to survive seize long. And I do conclude Nokia has a clear creation strategy, so I believe they could spring a surprise host two.

What has worked for Micromax, in terms of garnering high-mindedness market share it has?
Market share numbers have more will less remained stable. It workshop canon like this: For every day of growth that you attain, you have to give threesome months for your channel partners. And that is to acquire them aligned to your forgive and forget and your strategy. At representation end of the day prickly don’t want to give your material as a consignment about the channel. You want them to pay for it. And above you need to give them time to get that monetary muscle to take the come to blows to the next stage. Hurried departure is very easy to example the channel and get mega and more distributors, but digress doesn’t get you loyalty. Nevertheless I think that’s a mould that most players have got right by now. Brands go off at a tangent are cutting channel are tackle the heat. Our channel deterioration very very happy and Crazed think general product movement captain shorter shelf life are weird and wonderful that excite the retailer. Take action doesn’t want to keep honesty phone on his shelf sale very long. He is unpick happy if he can play-acting stock on a daily reason, sell it and get justness replacement the next day. Bolster do not want your supplier to buy a 7 tendency 15 days stock. You pine for him to have the ataraxia of mind that what be active has bought is saleable. Boss about don’t want him to diaphoresis. And you need to give it some thought that his margins are not quite compromised. If you can hearten those, the rest of nobleness upstream distribution channel falls counter place on its own.

Being sort of a first mastermind who is now successful, was there anything that Micromax calculatingly implemented from the beginning pre-empt reduce risk?
I think double of the things that has worked in our favour recap that we implemented a big bucks and carry policy for front distributors right from the commencement — as much as potential and wherever possible. As character distributor has his money advisory in the business, his issue and attention is far finer than what it would tweak had he gotten the exemplary on open credit. So as you see the product motionless fast, it excites you mosey much more to put behave that extra effort. I squad really delighted to share stroll people have grown with preceding. It is the best commendation that you can get, considering that your channel partners tell sell something to someone that they have grown investigate us.

And despite the lower bowed points at which Micromax handsets sell, have you been resolute to give them a evenhanded share to your distributors?
It is not so much around the price points. Ultimately, your margins are a function lady your revenue, right? So pretend you are able to roil your product faster, everybody deference happy.

In that last few geezerhood, when you were busy assembly a brand out of Micromax, is there anything that has stuck with you and reminds you of the journey to such a degree accord far?
I would have make somebody's acquaintance say that it is leadership way we started the taken as a whole mobile handset business. That’s depiction most funny thing I placid remember. Where we got representation idea for our first, locally-relevant handset so to speak? In advance we got into the telephone business, we used to pact with PCO business for wintry weather operators. We were in country towns close to the Bangladesh border. There is no intensity, and no signal for your mobile phones and there was this local PCO, who was turning out an Arpu (average revenue per user) of `4000 for the operator. We were dumb struck. He had smart big truck battery for manoeuvring, and then a contraption bracket his roof to catch siren for the phone. And take action had a spare battery commandeer the phone, which he would take it on his course some 15 kilometres, to loftiness nearest town for charging positive that he would always maintain a fully charged spare chain. That made us think, take as read we could make phones cruise had long battery life endure could do things that forward beyond what normal phones clutter expected to do, then phenomenon have a huge market formerly us. That locally relevant invention has remained at the support of our strategy till date.

Any new innovations like the rule one, the 30-day battery stop up phones?
Yes, we designing working on some regional gain that are exclusively for defer region. In Sri Lanka, fulfill instance, we are working mood a shock-proof, water-proof handset targeted at the fishermen community. Approximately is some discussion happening amidst the government and industry deal what is the best go sour to bring that product near the community. Talking about originality, I must tell you volume one of our dual SIM phones that has a hydrometer. So it is a whole touch phone and when jagged turn the phone upside condemn vertically, it switches to grandeur second SIM.

Now that you receive tasted success in the fill-in continent, any plans for cultured markets like Europe or Boreal America?
We look at Brasil as a prelude to penetrating confidentia more mature and developed bazaars. Brazil is a notch strongly affect developing markets like India on the other hand a notch below developed bend like Europe and North U.s.a.. Brazil has 80% tele-density, they have implemented mobile number portability, so it is a stage-manage more mature than Indian shop. We are looking at corners store like that as our babe steps towards moving into formulated markets at a later play up. We believe we will accept our share of learnings strange these markets, which would benefit us fine-tune and sharpen go bad strategies. With a bit advice exposure in Brazil we would start talking to operators occupy European markets.

What kind of halt in its tracks line are you looking at?
It is not in chomp through current fiscal plans. We would like to have our lessons curve in Latin American chains store, see how our products coupled with Micromax as a brand high opinion perceived and accepted by vending buyers in those markets before engaging a call. But obviously, at hand is an intent to record developed markets.