EFY Times  
Thursday, April 24, 2014

 
GO
 
 

Higher VAT In West India Is A Roadblock: iVK Mobile
 
Home >> Infotech >> Interviews
 
Higher VAT In West India Is A Roadblock: iVK Mobile  
 
Anil Kaushik, CEO, iVK Mobile says, "VAT is very high in that region and the sales tax is around 15 per cent, which impacts the dealer-pricing and the MRP. But all states where we have a common sales tax, we are focusing and moving ahead."   
Rate this news:  (0 Votes)
Wednesday, May 23, 2012 iVK Mobile Pvt Ltd set up shop in India in July last year and launched its first mobile phone in the market in September. Since then, the company is strategically capturing the market share with its low-end mobile phones and feature phones. So far, the company has feature phones in the price range of Rs 1,000 and Rs 3,600. Focusing on customer needs, the company was the first to launch a 3,000 mAh and 4,000 mAh mobile phone in India. The company also plans to launch an Android 4.0 tablet and Android 2.3 smartphone this month itself and get into the high-end product segment too. We speak to Anil Kaushik, CEO, iVK Mobile Pvt Ltd to know more about the firm and its expansion plans in India.

iVK Mobile Pvt Ltd, SICT, mobile phone, feature phone, handset, mobile phone market in India, Anil Kaushik, CEO, China, mobile phone manufacturing, iVK Mobile expansion plan, retail startegy, smartphone, tablet, Android 4.0, Ice Cream Sandwich, ICS, operating system, distribution




Tell us about iVK Mobile's journey so far.

iVK Mobile Pvt Ltd is the name of the organisation, which is a joint venture between iVK and one of the Chinese partners. This Chinese partner actually represents a company called Guo Xin Tong, which is the world's biggest mobile manufacturing company. It manufactures around 1,20,000 phones per day and 3.6 million phones per month. It not only manufactures phones, but whatever goes into a phone like the battery, the charger, the earphones, keypad and even the labels, everything is manufactured in-house. There are about 20,000 people working in the mobile manufacturing focused factory in China.

When did you start the joint venture?

The organisation was registered way back in the month of July, 2011. The first product was launched sometime in mid-September.

What is the SICT connection?

SICT is the brand name of the China-based organisation. We have launched the brand SICT as a joint venture in India so that we can actually mark our space in the mobile market of India. We sell about 5,00,000 mobile phones per month in India indirectly.

Can you elaborate more on the indirect sales?

We supply our products to most of the mobile brands in India, directly or indirectly. There are so many brands in India. These brands buy goods from various manufacturers of China or the so-called integrators from China. Those integrators either buy the product or the components to manufacture their products in China and then ship them in India. So, most of the local brands, directly or indirectly, are involved with us. Though SICT as a brand, is being sold only by iVK.

After having launched in the month of September, our journey has been very good but we are still striving for better. Even in the last six months, when the mobile industry was going down in the market, fortunately we were able to establish SICT as a brand in the areas wherever we started the business. We have really made an impact in the market in terms of competition, market awareness and even in terms of customer satisfaction.

Besides India, what other countries do you have a presence in?

SICT, as a brand, is available in Africa and Arabian countries. It is also available in Europe and many other Asian countries.

There are so many players in the handset market, so how do you plan to survive the competition?

I don’t feel there is competition because the market is so big that each player has a role to play himself. The market continues to grow, so if I have entered the market, probably I have taken some part of the growth, which has not affected the other brands in the country. So, actually there is not really much competition that we talk about. But from the customer’s point of view, when a customer sees a product which is new in the market, he does get attracted to it. For instance, iVK was the first in the country to launch a 3,000 mAh battery phone. We were also the first to launch a 4,000 mAh battery phone, which is a very specific focus on the market needs. It is just trying to bring a product to the customer, which meets his demands and needs.

Where all have you been able to create a market for yourself in the past six months?

We have been doing good in Haryana, Rajasthan, Delhi, Himachal Pradesh, Bihar and in West Bengal. We are doing reasonably fine in Uttar Pradesh (UP). We had to do some realignment in UP and reduce the sales but now the sales have started growing there too.

What kind of re-alignment?

It is a very tough market in UP and the strategy that we had taken up for UP was the same that we had taken up for other places. But, at the same time, it was also in-line with anyone else who was working in UP. That is when we realised that we had to do something different in UP and that is how the process started. Now, we have a re-aligned business model in UP and things have started moving. Earlier, we were doing only two zones – East zone and the West zone of UP. Now, we have bifurcated further into smaller segments for a better focus and a bigger market share.

How about presence in South India?

We have just started in Karnataka. This month, we are also starting in Andhra Pradesh. So, step by step and month wise, we are starting in the South region as well. Post that, we will be moving to the Manipur and the Assam belt.

What is the kind of market share you are looking for?

Our strategy has been that we must capture the first one per cent of the market share and then move to 10 per cent. We have already captured more than 1 per cent in a few states. In Haryana, Himachal Pradesh and Rajasthan we have more than 10 per cent market share. In other states like UP, it is not 10 per cent yet but it should be better now that we have re-aligned. In West Bengal, we started in the last week of March, so we have not reached that one per cent per say, but by next month we will achieve this kind of percentage of the market share. Regarding the PAN-India target, eight to 10 per cent is the bare minimum that I am looking forward to in the states where we are present. It is a per state target right now and cannot be PAN- India because we are not present in many states yet.

We are not doing any business in West India as of now, primarily because VAT is very high in that region and the sales tax is around 15 per cent, which impacts the dealer-pricing and the MRP. But all states where we have a common sales tax, we are focusing and moving ahead.

What are your expansion plans for the next three years?

My target is that by the end of the year, we should be touching more than 1,00,000 units per month. I have defined my target with reference to each state. In the month of March, we have already touched 60,000 units in a month in India and our average sales are 45,000 units per month, as of now.

What is your retail strategy?

We are going into pure distribution channel. There are three kinds of strategies in distribution. One is the normal distribution channel, second is modern trade, which includes mobile stores and third is the enterprise or a corporate channel. Right now, we are focused only on the distribution channel and have not focused on the modern trade.

Upasana Rajpal, EFYTIMES News Network


Print Email Post Comment 
(Total Views: 2426)
 
Share
 
 
Infotech News
   
6 Packet Sniffing Tools For Ethical Hackers!
Coding Error Leaves Android Mostly Immune To Heartbleed
This Online Time Capsule Will Store Upto 100GB Data For 30 Years!
Here Are 18 Proxy Websites To Access Blocked Websites
12 Instant Messaging Clients For Linux Users!
 
 
 
     
     
     
Press Release
     
Home Automation Tops Residential Tech ...
Rand 3D Presents And Exhibits At COE ...
Sprint “Wastes” Little Time – Lands ...
WiTricity Appoints Alex Gruzen As CEO
Bud Industries Expands Push Button Box ...
Huawei: Enabling Digital Logistics ...
Data Analytics To Be Investment ...
New 4’ Explosion Proof Portable LED ...
ViewSonic Readies 27-Inches ...
Infosys DigitizeEdge Creates New ...
New Hitachi Data Systems Technology ...
N2Power Team Up With TTI Europe, Inc., ...
Canon Bets Big On Kids For Home Inkjet ...
Tokyo Electron Device Announces Release ...
Molex Plateau HS Dock+ Connector System ...
Global Benzene Market & It's ...
Time Warner Announces Board Of ...
Frontier Communications’ Three-Year ...
Zycus eSourcing The First To Celebrate ...
Research And Markets: Global ...
Littelfuse Receives 2013 Supplier Of ...
VESA And MIPI Alliance Announce The ...
Research And Markets: Global ...
NIIT Technologies And Morris ...
Research And Markets: Retail In Russia ...
 
SanDisk Announces 15 Nanometer ...
Saab Supplies Vehicle Electronics To ...
Research And Markets: Global Consumer ...
Sonics Expands Market Lead In ...
STMicroelectronics’ New Sub-Dollar ...
Samsung Galaxy Series Riding High On ...
Power Matters Alliance Welcomes ...
Samsung And PayPal Select Nok Nok Labs ...
Your Most Cost-Effective 4-Color Label ...
Casio Showcases Power-Saving Timepieces ...
LG Unveils Two Powerful New Mobile ...
OHL And Birchbox Collaborate For New ...
TeleYemen First To Offer iDirect-Based ...
JMR BlueStor Networked Storage Server ...
Syntel Launches New Digital Enterprise ...
Forget That Power Cuts Ever Existed!
Cota Wireless Power Solution Penetrates ...
Sigma Labs, Inc. Signs An Agreement ...
The Personal Connected Health Alliance ...
CSX Celebrates Earth Day With Focus On ...
Commercial Telematics Market Worth ...
HELLA Developing New Charging Systems ...
High-Performance, Low-Cost ...
LG And Team ENERGY STAR Invite Youth To ...
SHV Energy Simplifies Its Distribution ...
     
     
     
     
     
Most popular
 
Features
6 Packet Sniffing Tools For Ethical Hackers!
Keeping your network secure requires a lot of tools. The packet sniffing tools are amongst those that are most important....
Here Are 18 Proxy Websites To Access Blocked Websites
Go on and surf some blocked websites......
12 Instant Messaging Clients For Linux Users!
Want to chat with your friends? Use these IMs!...
7 Cryptography Books That'll Answer All Your Questions!
If you want to learn to break ciphers, encryptions or codes, well, look no further... ...
Want To Access Blocked Sites? Here's How!
Do check with your local authorities before taking the plunge. ...
Are You An IT Security Professional? Here Are 8 Awesome Books!
Without proper resources and the skill set, maintaining the security of your network is a half-hearted attempt. ...
6 Tools That Let You Browse The Net Anonymously!
Being anonymous on the internet is even more important in this age of constant snooping by governments etc....
10 Useful Firefox Add-ons For Hackers
Well, if you're looking to have some fun with your Mozilla Firefox browser, these add-ons might just be the ones for you!...
13 Open Source Game Engines That Developers Can Use
Game engines have been modeled after games like Quake etc. and they are very useful for developers....
Micromax Will Now Manufacture Smartphones In India
The company has also started producing its tablet devices in India....
LG G3 May Have Google Now Like Feature Of Its Own
The device is expected to arrive in the second half of 2014 and will have a quad-HD display....
HTC May Have Secures Nexus 8 Contract
The Nexus 8 is expected to be unveiled at the Google’s I/O developer conference in June 2014....
Github Co-Founder Quits Over Harassment Case!
Tom Preston-Werner and his wife have been accused of sexism and gender-based discrimination....
Earth Day Special: Apple Is Recycling Its Products For Free!
Apple is even giving out gift cards for products that have resale value....
Xolo Launches Q1010i Affordable Smartphone AT Rs 13,499
The device is priced in the same range as the Moto G and the Micromax Canvas Turbo Mini....
 
  View All
Dialogue
 
HTC Is Strong And There Are No Plans Of Sale Now Or In Future, Says HTC's Senior Director-Marketing
Atithya Amaresh from EFYTimes had an exclusive chat with Sirpa H. Ikola, senior director, Marketing, South Asia, HTC about its devices and its plans w...
“Cloud And Hybrid Hosting Are The Way To Go!”
Diksha P Gupta from Open Source For You spoke to Anil Chandaliya, chief network administrator, ESDS, about how customers can play safe while dealing w...
"Linux Interoperability Has Been Enabled Through Work Across Microsoft"
Diksha P Gupta from the OSFY team spoke to Dr K Y Srinivasan, principal architect at Microsoft, about how the company is moving ahead on the open trac...
"For Modern Day Tablets And Smartphones, Android Has Become A Default"
Diksha P Gupta from EFYTimes.com spoke to Indrajit Sabharwal, managing director, Simmtronics Semiconductors Ltd, about the compan...
"Torvalds' Blunt, Harsh Criticism Helps Open Source Grow"
Steve Ballmer called Linux 'cancer, which attached itself... to everything it touches,' in 2001 and oh-so-rightly. ...
   
  View All
Videos
 
First Look: LG Optimus G
The phone sports a high-end display and comes powered by a powerful processor. ...
Create QR-Codes For Free
TEC-IT releases the freeware QR-Code Studio to provide a quick and convenient way of QR code creation for every application scenario....
DoT Secretary Shares Plans For Growth Of Telecom Sector
M.F. Farooqui has recently taken charge as secretary, Department of Telecom....
Hands-On: Sony Xperia Z
Xperia Z is Sony's first entrant model in the big-screen smartphone category. ...
Hands On: Videocon A30 Smartphone
Videocon, the consumer electronics company which is known for its refrigerators, washing machine and air-conditioner has unveiled its Android-based sm...
   
View All
   
 
MWC 2014
 
MWC 2014: Tablet Lets People Feel Textures On Its Screen
Now feel what you see on your tablet, by way of ultrasonic waves....
MWC 2014: 4K Android Tablet Games To Kill Consoles, iPad
Tablet makers like Samsung want to beat the iPad by making 4K tabs. ...
MWC 2014: This Vodafone Backpack Helps Get Network In Disaster Situations
Two engineers of Vodafone New Zealand displayed the "mini" mobile network by Vodafone substructure in a backpack. ...
MWC 2014: Wilocity Chipset To Bring 'Lightening' Speed To Mobile Phones
Wilocity has developed a WiGig chipset for mobile phones that will bring lightning-fast wireless capability ...
MWC 2014: Samsung Introduces Octacore, Hexacore Chipsets
The Korean giant, Samsung unveiled two new octacore and hexacore chipsets at MWC 2014, in Barcelona. The company previously used Exynos 5 Octa 5410 ch...
MWC 2014: Alcatel Unveils PIXI 7 Tablet With Android 4.4
Alcatel arrived at the MWC 2014 with yet another low cost Android tablet, priced at $110 ...
MWC 2014: LG F70 Unveiled With Android 4.4
LG announced the new LTE-enabled Android smartphone, LG F70, at MWC 2014 in Barcelona. ...
   
View All
   
 
Events
 
19th Consumer Electronic Imaging Fair To Be Held On ...

View All
   
   
 
 

home archives contact us advertise with us
           
Magazines Portals Directories Events News Verticals Educational Institute  
Electronics for You
Open Source for You
Facts for You
Electronics Bazaar
electronicsforu.com
efytimes.com
bpotimes.com
linuxforu.com
Electronics Annual Guide
EFY EXPO
EFY Awards
EduTech Expo
OSIDAYS Expo
Electronics
Infotech
Linux & Open Source
Consumer Electronics
Science & Technology
BPO
EFY Techcenter 
 
 
© Copyright 2014 EFY Enterprises Pvt. Ltd.
All rights reserved. Reproduction in whole or in part in any form or medium without written permission is prohibited.
Usage of the content from the web site is subject to Terms and Conditions