How Intex plans to expand, using post note-ban demand surge

The company to increase mobile phone production by 50%

In order to meet the post-demonetisation demand, Intex Technologies plans to increase mobile phone production by 50 per cent.

The home-grown mobile phones and consumer durables maker has the capacity to produce 35 million mobile phones. Of the total capacity, the company is achieving about 80 per cent production. 

With the increasing demand of smartphones after demonetisation and promotion of digital transactions, Intex technologies had decided to increase production. The company along with other domestic handset makers had been asked by the government to build a cheaper smartphone to promote digital transaction.

“We will be increasing the mobile phone production by 50 per cent,” Vishal Malik, head (retail) of Intex Technologies, told Business Standard. The company would be investing Rs 1000 crore to enhance its mobile phone production capacity to 53 million, he added.

The proposal of setting up new production unit is also in the pipeline. Many state governments have also offered to invest in setting up the plant in the state. The company also eyes to increase the indigenous components in the product to push Make-in-India campaign.

At present, 30 per cent components used in the mobile handsets are manufactured by the company while 70 per cent are imported. “We want to reverse the proportion,” Malik said, adding that the company is in the process of backward integration. 

Besides the country, Intex Technologies is also looking for a major expansion in increasing its footprint abroad. They are exploring the market in the Middle East and African countries to export the products, Malik added.