Mumbai: Home-grown mobile handset maker, Maxx Mobile, plans to foray into the tablet space and is working on features for the proposed products, a top company official said.
“We are in the process of developing some tabs. It will take a long time. It is not that easy (to produce a tablet). We have to do a lot of work on that. The features will be the USP (Unique Selling Proposition). Right now we cannot comment anything on it,” Maxx group chairman and managing director Ajjay Agarwal told the news agency here.
Its competitors would include the likes of Samsung’s Galaxy Tab, Blackberry Playbook, Apple iPad, Motorola’s Xoom, Dell’s Streak, Creative Technologies’ ZiiO and HTC ‘Flyer’.
While the bigger brands are selling their tablets at prices starting above Rs25,000, the Indian brands are looking at introducing their devices at much lower price points.
Since the launch of Apple iPad, the tablet market is witnessing huge competition, with new contenders launching their devices.
According to analysts, sales in the tablet PC segment in India are expected to touch one million units over the next 12 months.
Maxx Mobile manufactures handsets, high performance mobile phone batteries and mobile phone chargers in India.
The firm will also produce lithium iron cells from this fiscal at its Haridwar factory, but Agarwal did not divulge about number of units to be produced and the capacity of the plant.
“We are mainly into manufacturing of mobile phone batteries and chargers. The primary raw material for these mobile phone battery is lithium iron cells. It has a great consumption in our factory.
So we decided to do backward integration, Agarwal said, adding, the firm will invest Rs320 crore during this fiscal to produce lithium iron cells and mobile phones.
On the firm’s initial public offer (IPO), Agarwal said, “The IPO process is on right now. It is not concrete because documentation process is going on. Once it is completed, then we can share some details. The documentation process should be completed in the next 40-50 days”.
He, however, remained tight-lipped on the funds the company planned to raise from the IPO.
According to media reports, the firm plans to raise Rs800 crore through the IPO and has appointed Enam Securities, Nomura and SBI Caps as the lead book running manager.
“The funds will be used for lithium iron cell project and mobile phones. Right now we are going ahead with the projects with the help of internal accruals and debt from bank,” he added.
The company is currently focusing on its brand building exercise, and expects the tie-up with the Indian Premier League (IPL) for strategic time outs during the matches (estimated to be over Rs20 crore for a year) and a seven-year brand endorsement deal of Rs29 crore, with Mahendra Singh Dhoni would help the cause.