Micromax expects 25% growth in revenues in FY17

Plans global expansion in next 1-2 years

Micromax, one of India's leading mobile handset makers, today said it was expecting a 25 per cent growth in revenues to touch Rs 15,000 crore mark in the current year.

The company inaugurated a new mobile manufacturing plant, it's second facility, on the outskirts of Hyderabad. The plant was set up at an investment of Rs 100 crore.

Speaking on this occasion, Rajesh Agarwal, co-founder and chairman of Micromax said that the company would also pursue the export markets besides seeking to expand in the domestic market in the next 1-2 years.

The company, which is currently the third largest mobile handset brand in Russia, is looking to expand its global footprint covering other CIS countries and the countries in Africa in the coming days, according to Agarwal.

Besides this, Micromax aims to increase its market share in India to 20 per cent from the present 14 per cent level by next year, he added.

For all this future expansion, the company plans to invest Rs 2,000 crore on the manufacturing, R&D and product development areas over the next 5-6 years.

With an existing manufacturing capacity of 2.5 million handsets a month, the company was able to achieve a total revenue of Rs 12,000 crore for the full year in 2015-16, and in the current year the same is expected to reach Rs 15,000 crore.

Hyderabad facility was built with a capacity to produce 1 million handsets per month. The company plans to reach the full production capacity level at this facility by the end of this calendar year from half a million handsets per month in the initial months.

The third plant, proposed to be set up in Rajasthan with a similar 1 million handsets per month capacity, will be ready in another 6-7 months time, Agarwal said. Micromax also entered in TV sets manufacturing with a belief that it is better placed in producing the new generation smart TVs.

Telangana IT minister K T Rama Rao inaugurated the Micromax plant, which will also house the company's R&D initiatives in future.The facility currently employs 700 people and will increase the number to 1,000 employees in the next two months, boosting employment opportunities in the state, the minister said.