EFY Times  
Sunday, March 29, 2015

 
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: 2750)
 
Share

 
 
Infotech News
   
Insecure Wearables: Kaspersky Lab Researcher Discovers Security Issue In His Fitness Wristband
CTE Announces Partnering Agreement With ForgeRock
Trend Micro: Hackers Using Android App For Sextortion
Canonical Partners With Ericsson For NFV Telecoms
Microsoft Acquires Office Collaborator App Liveloop
 
 
 
     
     
     
Most popular
 

Daily

T-Mobile Opens Online, Retail Sales Tomorrow For Samsung’s Newest, Edgiest Smartphones
Fuji Electric Wins Geothermal Power Equipment Contracts In Indonesia And Iceland
The 4-Day Infibeam March Mega Sale To Commence On 27th March
Industrial Internet Consortium Announces Smart Grid Testbed
Samsung Galaxy S 6 And Galaxy S 6 Edge U.S. Pre-Orders Begin March 27; Available Nationwide April 10
Molex SSL Expert Illuminates Path Of Empowerment Through Light At TEDxBentleyU
Orbital ATK Contributions Vital To Successful Launch Of ULA’s Delta IV Rocket
Research And Markets: Laser Systems - Global Strategic Business Report 2015-2020: Asia-Pacific To Lead Future Growth In The Market
FLEXcon Introduces New DigiPRO Topcoat For HP Indigo Printing On Specialty Films
Research And Markets: Hearing Protection Devices - Global Strategic Business Report 2015-2020: Ear Plug Fit Testing - A High Potential Technology
 
   

Weekly

FedDev Ontario Supports Global Growth Of Wysdom Software Platform For Mobile Devices
TDC Announces Partnership With NIDA - Australia’s National Institute Of Dramatic Art
Microsoft Partners With Android Manufacturers
Best Alternatives To Google Code For Programmers
8 Open Source Tools For Windows
Samsung Health And Medical Equipment Sponsors Heart Across America Cycling Tour Kicking Off March 22
Cloud-Based 3D Printing OS Launched By 3DPrinterOS
New Live Or On-Demand Online Courses Develop Human Resources And Technology Skills For Leaders In Business Of Law
8 Coolest Cloud Programming Langauges
7 Tips To Mitigate Data Breaches
GreenPeak Launches Smart PIR Sensor For Smart Home Applications
Top 8 Python Frameworks For Web Developers
Top 8 Best AngularJS Tools For Web Developers
Trend Micro: Hack May Have Cost Sony $100 Million!
6 Must Have Tools For Java Professionals
Mozilla Releases Updated Version Of Firefox
 
   

Overall

Features
6 Must Have Tools For Java Professionals
Here is the list of tools for Java developers that are proven to get the job done efficiently....
8 Coolest Cloud Programming Langauges
If you are looking to master in programming languages, here are eight great options among cloud computing world....
7 Tips To Mitigate Data Breaches
Here are seven tips you can follow to avoid data breaches in your organisation!...
Top 8 Python Frameworks For Web Developers
Working with a web framework helps you jump-start your web application. Here are eight best Python Frameworks for web developers....
Best Alternatives To Google Code For Programmers
Google is shutting down Google Code, their hosting service for open source projects and coding initiatives. Here are a few alternatives that can get y...
Top 8 Best PHP Tools For Analysing And Parsing Code
Here are some of the best PHP Tools that will help programmers to analyse and parse their programming code....
8 Open Source Tools For Windows
Here are top eight free open source tools by Microsoft....
7 Tips To Avoid Getting Scammed On Internet
Online frauds and scams are nothing new to us. Here are seven tips that you can follow to protect yourself online....
7 Best Java IDEs For Programmers
Here is the comprehensive list of some of the most popular and praised IDEs for Java....
5 Reasons To Take Up Job In A Tech Company
Are you looking for an informal workplace full of new ideas and advancement opportunities? You should consider a career in tech!...
8 New Trends Among Mobile Developers
A new survey of mobile app developers reveals some interesting facts about their work....
6 Tips To Protect Important Data
Here are few considerations security processes that can be good enough to ensure a the basic level of security to users....
Top 8 Best AngularJS Tools For Web Developers
There is a long range of AngularJS tools available in the internet. Today we have mentioned eight best AngularJS tools for web developers....
8 Tips To Build HTML5 Based Mobile Apps
A great HTML5 app, which could make waves in app stores, requires to be built with planning. Here are 8 tips that can help you in building HTML5 based...
5 Latest Versions Of Top Linux Distros
Linux has over 600 existing distributions; among which 300 are in active development. Here are top five latest linux distros....
 
  View All
Dialogue
 
We Have Registered 50 Per Cent Growth In The Last Two Years: Arihant Lighting
Apart from LEDs, Arihant is associated with the promotion of renewable energy in India and therefore, manufactures various energy saving products....
“Elcom Plans To Build A New State Of The Art R&D And Manufacturing Unit In Maharashtra", Reveals MD Girish V Vaze
Starting out as a small business to cater to the industry’s need for import substitutes, Elcom International has grown to be a leader in the field of ...
Delta Magnets Ltd To Enter Into JV With Chinese Company!
The company had partnered with TDK Japan for technology transfer to manufacture magnets in India....
"Littelfuse Is Growing At Around 20-25 Per Cent In India And Expect That To Continue", Predicts VP Deepak Nayar
On the electronics side, Littelfuse has registered an 8-10 per cent growth, year on year....
10 Questions That Google Never Asks While Hiring!
Here is a list of 10 questions that Google just banned from their interviews....
   
  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
   
 
IFA 2014
 
IFA 2014: LG Launches 34-Inches Curved Monitor
The company is yet to confirm price and availability of the device....
IFA 2014: Intel Launches First Core M Range Of Processors
This range of processors is tailor-made for 2-in-1 devices which include a tablet and a laptop....
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...
   
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
Electronics Bazaar
electronicsforu.com
efytimes.com
opensourceforu.com
electronicsb2b.com
Electronics Annual Guide
EFY EXPO INDIA
EFY EXPO WEST
ELECTRONICS ROCKS
EFY Awards
OSIDAYS Expo
Electronics
Infotech
Linux & Open Source
Consumer Electronics
Science & Technology
BPO
EFY Techcenter

Educational Kits
Kitsnspares.com  
 
 
© Copyright 2015 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