NEW DELHI: Homegrown handset maker Micromax has created a Rs 500 crore war chest for its new ‘in’ sub-brand as it looks to make a comeback in the Indian market and take on Chinese giants like Xiaomi.
Speaking to reporters, Micromax co-founder Rahul Sharma said there is a huge demand for smartphones made by Indian companies and that has gained more traction after the recent Indo-Chinese tension.
“Our new ‘in’ brand is not just aimed at cashing in on the sentiment…We wanted to come back with a complete strategy, backed by feature-rich products…We will invest Rs 500 crore over the next 12-18 months in R&D, marketing and sprucing up manufacturing,” he said.
Once a market leader, Micromax lost its position to players like Xiaomi, Oppo and Vivo as these Chinese giants captured the Indian market with their aggressively priced smartphones and massive marketing spends.
However, supply chain disruption due to COVID-19 and growing anti-China sentiment, Chinese smartphone brands saw their market share in India fall to 72 per cent in the June 2020 quarter from 81 per cent in the preceding three months (as per Counterpoint Research).
Sharma explained that three factors have played a role in this decision to bring in the new brand.
“The six per cent support through PLI is big and with the Government support, we will be able to fight more aggressively. The second is the whole Indo-China situation, we heard from analysts and dealers that there is a demand for phones from Indian companies and that is going to be long-term,” he said. (AGENCIES)
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