Come Diwali and there could be one more mobile phone brand pitching for in this fast growing market. Consumer electronics company Videocon Industries is all set to launch its own brand of mobile handsets even as it continues with talks to acquire Motorola’s handset business.
Videocon’s venture into the mobile handset space comes in conjunction with the company’s entry as a service provider in the country through subsidiary company Datacom.
The Indian handset market is highly competitive, with Nokia Corp leading the business. Samsung, Motorola, Sony Ericsson and LG are the other leading players and the industry lately is seeing some new entrants.
Analysts say there is space for more players.
"There are more than 30 Chinese vendors in a market like China in addition to other global players and similarly India is a big market with space for new vendors", said Anshul Gupta, Principal Research Analyst, Gartner. "Those who want to make their mark will have to offer feature rich yet value for money devices."
Last week semiconductor company NXP and Orpat largely known for its clocks, announced their plans to launch handsets multimedia categories priced at about Rs 3,000.
Videocon has already got on board, HS Bhatia, the former head of GSM mobile phones at LG India to manage its handset division. "We will introduce our GSM handsets in the market by Diwali this year," said Bhatia, Vice President, and Product Business Head of the GSM Division at Videocon.
"We will not get into the very low or high end handset models initially and would target to capture a majority of the market in the Rs 2,000 to Rs 8,000 range with feature rich handsets."
The company will launch handsets bundled with a Datacom connection. The handsets will be sourced from China and Taiwan and sold under the company’s brand name, which is yet to be announced. Videocon handsets will be sold through the company’s existing retail outlets, Planet M stores and company’s own stores Next.