‘The Mobile Phone Market in India is Expected to Grow by 4% to 250M Units, and the Trend Will Continue’ Says Pankaj Anand, CEO, Jivi Mobiles
When you start your own business, it’s important to try your hand at everything and identify which areas of operation you’re best at and enjoy doing the most.
Magicon Impex Pvt. Ltd., founded in 2004, is an implied manufacturer, importer & distributor of innovative products & services. JIVI Mobiles, the company's own brand was launched in 2011 with an aim to offer "Rich on Features, Value for Money" mobile phones to the Indian populace. With its own setup in China and Hongkong, the Product Range of JIVI Mobiles caters to every segment of the population; starting with the entry level bar phones with FM to High-end 3G Android based smart phones.
In an interaction with Sujata Sangwan of BWDisrupt, Pankaj Anand, CEO, Jivi Mobiles, shares views and insights about the Indian mobile phone industry.
How do you see the Indian mobile phone industry for the current calendar year? What are some of the biggest trends and developments you saw during this period?
Indian mobile phone industry is expanding substantially India is currently the second-largest telecommunication market and has the third highest number of internet users in the world.
Feature phone market commands above 60% share of the total cell phone connections in India. While it’s about 37% in case of smartphone market, which is expected to rise with a fast walk. The wireless segment (97.46 per cent of total telephone subscriptions) dominates the market. Smartphone subscription is expected increase 4 folds in the coming five years.
The mobile phone market in India is expected to grow by 4% to 250 million units, and the trend will continue and we can see more handsets available for less than Rs 5,000.
The innovators are accessorizing the existing technology pieces. A new phase of wearable is in while Internet of Things accessories may well amount to part of what is more a reset than a revolution, in the coming year.
Moreover, as the market is developing in numbers, we look forward a lot of new products coming up, especially in smartphones and variable segments.
How have you seen the mobile phone market evolve? What future do you predict based on your observation?
In the beginning cellphones were considered to be car phones which were incredibly expensive. Eventually, cell phone manufacturers began to realize that they could integrate other technologies into their phone and expand its features. The cell phones of today are also replacing our other gadgets, such as cameras the physical design has also gone through a rollercoaster of changes.
I believe in the future, cell phones will become even more naturally in sync with our biological reflexes and processes such as eye movement, thought processes, kinesthetic, cultural preferences. Supporting the technology trends mobile phone will be one of the primary gadgets to be contributing to smart cities.
In the era of smartphones and phablets, as a feature phone manufacturer, what was your mission at the outset?
As mentioned, feature phones market commands over smartphone market by holding over 60% of the share. Consumers in Tier 2 and 3 markets are still depended on feature phone. Some users buy phones with limited or no internet connections in a conscious attempt to decouple from the modern digital world.
There are also practical reasons why this bunch of people use feature phones. The short battery life of smartphones and other heavy devices is a source of constant complaint. Second feature phones have more specific uses, they are simple, robust and cheap if lost. For the elderly who prefer large buttons and the amplification of volume rather than how quickly they can access the internet, feature phones are the best.
To cater to this market in India, Jivi Mobiles has set up manufacturing units in India. The one in New Delhi is functional, while we are setting up the other facility in Lonavala, Mumbai.
What are the innovative and distinguishing technologies you are using in your feature phones?
Jivi Mobiles will be launching a feature phone with OTG facility, which is available only in smartphones till date. There are many more innovative ideas will be lined up in our future range.
Throw some light on your contribution towards the Make in India initiative.
JIVI Mobiles took a major step in the direction of realizing Prime Minister Narendra Modi’s Vision of ‘Make in India’ by setting up two new facilities with a phased investment of Rs. 200 crores. JIVI Mobile’s first factory is in Mahipalpur, New Delhi built up on an area of 16000 sq. ft. which would cater to North and East India demand of JIVI Mobile phones. The company has begun its manufacturing operations in its first fabrication unit in Delhi. The first facility has an installed capacity of manufacturing 7 lakh phones per month with the current man power of 300 + employees. This exceed to more than 500 by end of this quarter.
The second unit in Lonala will be operational by January 2016 from where the employment more than 500 jobs will be created.
What are your future plans in line with the PM’s Campaign?
We will be starting manufacturing Batteries & Chargers in next phase in Lonavala, Mumbai. We are also looking forward to invest in SMT lines for producing PCBA in future.
Are you looking to get into smartphone market in India?
We are planning to launch series of smartphones at very aggressive price point.
How has been the CY 2016 (till date) for you? Can you share some of your company’s biggest achievements, innovations or milestones during this year?
CY 16 has been a great year for us in terms of grabbing a good share in Feature phones market also, our leading TV shopping Channel ‘Jivi Shoppe’ that hosts a variety of products from hundreds of different brands has become one of India's leading TV shopping channel. At Jivi and Jivi Shoppe we have always understood the value of our customers hard earned money and offer them "Rich on Features, Value for Money" mobile phones to the Indian populace.
We are also entering Smartphone market will be launching host of new innovate and affordable products.
Also, we have been concentrating in ‘Made in India’ products. From the very beginning we have been propagating the cause and have come up with a facility in mahipalpur and investing around 100 crores for a new facility in Lonavala.
Of your sales, what would be the ratio for offline and online distribution? And who are your online retailers?
We have a strong offline distribution channel and as mentioned our TV Shopping Channel “JIVI SHOPPE” has become one of the leading TV shopping Channel. JIVI SHOPPE has a unique shopping concept that lets you buy from the ease of your home and we offer products which are "Rich on Features, Value for Money”.
A piece of advice for a young entrepreneur.
When you start your own business, it’s important to try your hand at everything and identify which areas of operation you’re best at and enjoy doing the most. Young entrepreneurs look at the world with fresh eyes and such lively determination. Some of the modern world’s greatest ideas and innovations came from people in their 20s or younger. You could be next.
About the CEO
Mr. Pankaj Anand is a Commerce Graduate, having 17 years of entrepreneurial experience of running and managing large distribution networks and sourcing of products both at Domestic and International level. He is one of the best seasoned and experienced professional in the mobile industry. At Jivi mobiles, he plays an important role of finalizing product road maps and strategy of overall Jivi Mobile business.
He is being instrumental in creating a home TV business “Jivi Shoppe” business vertical at Magicon Impex Pvt. Ltd. to promote both mobiles and non-mobiles products and leverage visibility and reach. He is deeply involved in deciding, finalizing and execution of Jivi Shoppe business strategy.
Mr. Pankaj Anand is one of the veterans in Mobile feature phone industry and has won loads of awards and recognitions for his disruptive sourcing and business strategies at various key forums in India.
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