Micromax, which was one of the leading smartphone brands in India, has announced its comeback. This was informed by the co-founder of the brand Rahul Sharma in a video message shared on his social media.
It seems as the time has turned back as we will soon see Micromax phones again in the markets. The co-founder also admits that the company made some mistakes and has learned from them. Micromax was very successful in 2010 and remained at the top spot in 2014 with its budget smartphones across all segments.
— Rahul Sharma (@rahulsharma) October 16, 2020
The message was released after the Central Government conformed that Bhagwati Products, the company that manufactures phones for Micromax, is eligible for the performance-linked incentive (PLI) scheme.
The PLI Scheme is a push by the Central government to boost its ambitious schemes like the “Aatmanirbhar Bharat” and “Make in India.” It will also help India to realize its export target. India wants to decrease its dependency on Chinese imports and that is why the Government is pushing for “Make in India”.
Micromax plans to utilize its two manufacturing facilities in India for making 2 million smartphones on a monthly basis. They are very clear on the fact that they will make smartphones from scratch. This will also lead to a large-scale employment opportunity being created in India.
The economic ecosystem is right for Micromax to come back to India as the consumers’ sentiments are inclined towards Indian companies and not those companies that have imported from China. This happened after the tensions flared at the India-china borders and India lost many of its soldiers in the Galwan valley clash. One of the biggest advantages Micromax has over other Chinese smartphone manufacturing brands is its retail presence in Tier 2 and Tier 3 cities.
It will be interesting to see whether Micromax will be able to capitalize on its retail presence or not as it’s not a rosy road ahead. It will face stiff competition from Samsung and Xiaomi which are the leading brands in budget-level smartphones. On a positive note, it is good to see the “India ka smartphone” brand making its comeback.