Intex targets Rs 6,500-cr revenue by March 2016

Intex Technologies targets to cross $1-billion (Rs 6,500 crore) revenue by March 2016.

During the financial year ended March 2014, Intex had doubled its revenue to Rs 2,000 crore on a year ago, backed by a 300 per cent jump in handset business. In FY2014, the revenue from handsets crossed Rs 1,300 crore, a massive jump from Rs 400 crore in FY2013. “We target to cross Rs 3,500 crore in revenues by March 2015 and cross the $1-billion mark by March 2016,” said Narendra Bansal, CMD.

Initially, the company banked on its existing computer accessories distribution network to sell mobile handset which did not work in favour, Bansal said. “So, we have built a new distribution network for mobiles. We have also started building Intex as a mobile handset brand through celebrity endorsements and campaigns across platform,” he added.

At present, it gets about 50 per cent of value from smartphones, and the remaining comes from feature phones. “The feature phones are shrinking very fast. With Indian handset makers trying to tap the lower-to-mid end of the smartphone market, entry-level price has come down to below Rs 3,000 for a smartphone. Over the few quarters, average selling price would also go up,” he said. At present, average selling price for feature phones are Rs 1,200 and smartphones at Rs 6,000.

In a February report, International Data Corporation (IDC) had said in a report that the fourth quarter of calendar year 2013 had witnessed a spike in the smartphone shipments by smaller home-grown vendors like Lava, Intex which have shown tremendous growth in the past couple of quarters.

Bansal said Intex is exploring entry into overseas markets like Bangladesh, Sri Lanka, Nepal and Africa over the next two to three years.

Besides mobile handsets, Bansal said, the company plans to increase presence in the flat panel television market in India. “It will take time to flourish, but there is enough space in the market,” he added.

In FY 2015, Intex aims to invest Rs 100 crore in marketing and promotions.