Somersault: After TVs, Micromax Plans To Sell ACs With a Planned ₹200 Crore Investment

10/06/2016 1:02 PM IST | Updated 15/07/2016 8:27 AM IST
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Vikas Jain, co-founder of Micromax Informatics Ltd., speaks during the Rise conference in Hong Kong, China, on Thursday, June 2, 2016. The conference runs through June 2. Photographer: Billy H.C. Kwok/Bloomberg via Getty Images

Micromax Informatics, India’s second largest smartphones maker, has plans to enter the air conditioner market in the coming weeks, as it tries to get a foothold in the consumer durables segment.

According to a Mint report, the Gurugram-based Micromax hopes durables will contribute to about 20 per cent of overall revenue in the next 12 months. It also has plans to sell a range of big ticket goods including washing machines in the second half of 2017, a senior Micromax executive told Mint.

Micromax has plans to manufacture window and split ACs at its Uttarakhand facility that is set to receive the ₹200 crore investment, the Mint report said. Prices will range from Rs.20,000 to Rs.30,000. Micromax launched into the TV space two years ago, which currently contributes to about 12 per cent of its sales.

Micromax has been facing stiff competition in the smartphones market in India from Samsung and Chinese handset makers. It recently announced plans to begin selling smartphones in China as a way to generate more cash.

Handsets shipments into India have slowed in the last six months, according to research from IDC, signalling unsold inventory of many affordable-range handsets, according to the report.

Micromax grew its fortunes on the back of cheap handsets, a strategy that helped set it apart from expensive competition a few years ago. It doesn't appear that the prices of its ACs are targeting that same affordable segment.

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