Micromax eyes more revenue from TVs, ACs & refrigerators

Micromax, which already sells air conditioners and televisions, is launching washing machines and refrigerators and expects the consumer electronics category to contribute ₹2,000 crore in revenue by 2020.

Mobile phone maker Micromax Informatics Ltd is expanding its consumer durables line-up in the hope of stabilising its falling revenues amid stiff competition from Chinese handset makers.

Micromax co-founder Rajesh Agarwal.

Gurugram-based Micromax, which is now trying to position itself as a consumer electronics company, targets about 30% of its revenue from categories other than phones by fiscal 2018-19.

For the current fiscal year, these categories are likely to account for 20% of overall revenue, said Micromax co-founder Rajesh Agarwal.

Micromax, which already sells air conditioners and televisions, is launching washing machines and refrigerators and expects the consumer electronics category to contribute ₹2,000 crore in revenue by 2020, Agarwal said.

For the fiscal year ending March 31, 2017, Micromax reported revenue of ₹5,614 crore, a nearly 40% drop from a year earlier, according to filings with the Registrar of Companies.

Agarwal hinted at a further decline in revenue for this year but did not disclose the exact numbers.

The company expects to close 2017-18 with revenue of ₹1,100-1,200 crore for the consumer electronics segment, Agarwal added.

“We have a conviction that we can be a big consumer electronics company,” said Agarwal.

The company is targeting 5% market share of the refrigerator and washing machine segment in the first year and about 7% in the next 24 months, he added.

“India’s consumer electronics segment is growing at 11-13% and we want to address the mass market segment by launching affordable consumer durables,” Agarwal added.