Sagem of France enters mobile mart

The France-based technology and communications group Sagem SA announced its foray into the Indian mobile market with the launch of its 'My X series' of GSM phones.

With its entry into India, Sagem is aiming to strengthen its foothold in Asia Pacific. The $3 billion company already has a presence in China and Taiwan. For its Indian venture, it has entered into an distribution alliance with Cenzer Industries to market and distribute the handsets.

Priced in the range of below Rs 4,000 for its low end model to Rs 16,000 for is high-end camera phone model, Sagem intends to achieve a significant share of the mobile market. The company will initially market its mobile phones in Mumbai, Delhi and Maharashtra and later plans to spread its wings on a national scale.

Mahendra, chief executive officer, Cenzer Industries said, "We are planning a phased entry so that we can guarantee pre and post marketing servicing of the product. That way, we can build our brand and also penetrate the market."

The company is targeting to sell 30,000 to 50,000 handsets in the three months.

Sagem entered China in 1996, and entrenched itself in their market through a joint venture with mobile phone company Bird in 2001. Asked about the late entry into India, Samy Redjeb, head of sales (Asia Pacific), Sagem SA, mobile phones division said, "India has about 20 million GSM users currently and the market is tipped to grow over five times in the next three to four years. Given the scenario, along with a considerable decline in the grey market, we feel now is the right time to enter the market."