Intex eyes foreign markets for higher growth

The handset maker has ventured into at least 7 foreign markets since January and plans to enter another 10 by March

Mobile handset company Intex is following its peers to expand operations abroad. The firm has ventured into at least seven foreign markets since January and plans to enter another 10 by March. 

Two other Indian handset firms, Micromax and Lava, have made similar forays.

Intex has entered Vietnam, Spain, Bangladesh, Nepal, and Sri Lanka, and is ready to start operations in Russia and Kazakhstan. Preparations have been under way for two years, according to Vishwas Agarwal, who heads Intex’s international business team. 

Myanmar, Nigeria, Germany, the UK, Iran, Qatar, Georgia, and Azerbaijan were some of the other markets Intex would be in by March, he said.

Intex earns Rs 4,500 crore of its Rs 6,500 crore annual revenue from handset sales and could double its income from handsets by 2020 if its foray abroad bears fruit. “Our immediate aim is to capture 5-10 per cent market share in Myanmar, Nigeria, and Russia by March 2018,” Agarwal said. 

Intex has decided to launch separate handset models abroad and is tying up with local online market places like Jumia in Africa and Lazada in Indonesia.

Micromax has expanded its foreign operations and has acquired trademarks for its brand in over 100 countries. Lava is present in Dubai, Nepal, Thailand, Bangladesh, and Myanmar.

Over the past few quarters, all three Indian handset brands have lost significant share in domestic market. Intex, which was the third-largest brand in January-March, failed to manage a place among the top five in July-September. Micromax, which held on to second spot for over a year, lost the position to Lenovo in the last quarter. Lava, fifth-largest brand till last December, has failed to appear among top five since.

Apart from handsets, Intex plans to sell other consumer electronic products abroad. According to Agarwal, investments abroad provide better returns than in India. The company has invested Rs 10 crore in foreign markets for marketing and promotion this year and plans to reinvest 10 per cent of its global revenue.