Lava CMD flaunts global stature of brand

Commits to localise all components, save for chips; aims to launch 96 mobile phones across India

Lava International, the manufacturers of Lava mobiles which started its operations 2009, said it will increase its international business manifold in the current financial year. Overseas business now accounts for 31 per cent of Lava’s revenues.

Lava International Chairman and Managing Director Hari Om Rai told Deccan Herald that the company’s mission is to become a global brand out of India and in this quest it has entered into tie-ups with top global players resulting in rapid expansion abroad.

“Over the last two years, the Group has built teams, brand presence, and invested resources in understanding the culture and consumer needs in countries like Dubai, Nepal, Thailand, Bangladesh, Myanmar, etc. In fact Lava is the number two smartphone brand in Thailand,” said Rai.

He said the company sold more than 26 million handsets and recorded group sales of $1.2 billion in FY2014-2015, registering more than 100 per cent growth over FY 2013-2014.

“The growth has been fuelled by a threefold increase in the smartphone segment in comparison to FY 2013-2014 with significant contribution coming from international markets. Lava International became the No. 2 player among Indian brands in overall handsets as well as in smartphones in FY2014-2015, as per the report by Cybex Exim Solutions,” he said.

On the India strategy, he said the company is aiming to launch about 96 mobiles phones, including both feature phones and smartphones, across India. “We always aim to offer differentiated products that are great on experience and empower people to do more, and be more. We have a research and development (R&D) centre at Bengaluru and in China, from where we are driving software innovations to give an enhanced experience to customers,” the Lava managing director said.

Targets 18 m phones
On the manufacturing side, he said the company has already set up its first manufacturing unit in Noida with an installed capacity to produce one million phones per month.

“The recently set up manufacturing unit in Noida aims to have an annual production capacity of 12 million phones. With investments coming in to set up more manufacturing units in other parts of the country, we aim to achieve a combined capacity of 18 million handsets per month once all the units are functional,” he said.

When asked about the Modi-led government’s ‘Make in India’ campaign, he said it is one of the major national programmes which has been designed to facilitate investment and establish India as a global manufacturing hub.

“Lava, as one of the leading handset players in the industry today, has pledged its support and commitment towards this  initiative. Our future plan is to localise all components other than semiconductors, thereby creating a whole ecosystem of mobile manufacturing in India,” he said.

Rai said the company is scouting for manufacturing facilities pan-India and is in advance level of discussions with various state governments. “A manufacturing unit ideally requires a very large space which is well connected with key cities. It is also dependent on availability of natural and human resources as setting up a manufacturing unit is a long process which is accomplished in various phases. Handset manufacturing units should be open to explore the availability and viability of resources across the nation,” he said.