Micromax Posts Rs 10,000 Cr Revenue, Sells 33 Mn Phones in FY15

micromax-logoThough there are conflicting reports from different research agencies about Micromax and Samsung on the leadership position in Indian smartphone market, the way the former is building its empire, it appears, Micromax is certainly not cut out for the #3 slot and Samsung is not less threatened to loose its old crown.

Last year’s performance of the company tells volumes about what Micromax is up to.

Riding high on its mass market smartphone sales, India’s largest homegrown mobile phone maker Micromax has clocked revenues of more than Rs 10,000 crore in the 2014-15 financial year registering a  growth of close to 39% over the previous fiscal. In FY2013-14 Micromax’s revenue was was Rs 7,200 crore.

“Though our books audit is not complete yet for the last FY, our revenue has already crossed Rs 10,000 crore,” Micromax’s CEO Vineet Taneja told TeleAnalysis at the sideline of an event where the company launched its mass market smartphone Canvas Spark.

The Micromax Canvas Spark is priced at Rs 4,999.

Answering the question what drove this growth in the last fiscal, Vineet said the adoption of mass market smartphone was the biggest factor.

“We sold 10 million mass market smartphones during last year,” he added. These phones are priced between Rs 3,000 to Rs 5,000 and customers who earlier were choosing to buy a feature phone, now, started considering to buy these phones as there is hardly any price difference but the value upgradation is huge.

The ASP (average selling price) for Micromax’s mass market phone was around Rs 4,000. He said that mass market smartphone industry is growing at double the rate of what smartphone market is growing in India.

“Close to 60% of the smartphones sales come from mass market category and this share is growing each passing day,” Vineet said.

In total, according to Vineet, Micromax sold 33 million mobile phones in the last fiscal year and feature phones as well as smartphones contributed equally.

“I do not remember the exact figures but feature phones contributed around 18-19 million and smartphones were at 13-14 million,” said Micromax’s Taneja, who is an industry veteran having worked with companies like Nokia, Samsung and Airtel in leadership positions in the past.

 

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