Reference Auto

So, even domestic players in India, such as Maxx Mobile, plan to foray into the tablet market and this could have one (ripple) effect for sure in the days ahead: Like the mobile handset market, the tablet segment will get swamped and almost every second person will carry a tablet.

The bigger names sell their tablets at prices that begin from Rs 25,000 but Indian handset makers could introduce their gizmos at much lower prices, which, according to market grapevine, could begin from Rs 15,000 only.

Apple has had first-mover advantage in this market with its iPad. But with companies like Samsung and BlackBerry, among others, launching their versions (of the iPad), competition is intensifying. With the entry of homegrown players, competition will touch a new benchmark.

Maxx Mobile makes handsets, cellphone batteries and mobile phone chargers in the country.

The firm will also make lithium iron cells from this fiscal at its Haridwar factory, but it is unclear what the capacity of the plant will be.

“We mainly make mobile phone batteries and chargers. The main raw material for mobile phone battery is lithium iron cells, the consumption of which is very high. So, we will go into backward integration,” said Maxx Group chairman and managing director Ajay Agarwal.

The firm plans to pump in Rs 320 crore during this fiscal to produce lithium iron cells and mobile phones.

Backward integration will have two advantages: It will ensure constant supply of raw materials and bring down raw material prices.

It is believed that Maxx plans to mop up Rs 800 crore via an IPO and has appointed Enam Securities, Nomura and SBI Caps as lead book running managers.

As per information on its tablet, Maxx is still on the drawing board and is working on what features to introduce to be on par with the biggies and also offer a price advantage.

Agarwal added, “We are developing tablets. It could take a while as it is not easy (to make a tablet). We have to do a lot of work on the product. The features will be the USP. We cannot comment now.”

But how long will Maxx take to make its tablet? A long wait could, however, derail its growth prospects and see other budget handset makers surge ahead and big brands may also lower their prices.

If Maxx has to grab a substantial portion of this lucrative market, it will have to ensure that its tablet is out within a period of six-eight months.

Otherwise, Maxx Mobile could lose out to other players and find it difficult to capture a big chunk of this market, which is set to get swamped with a whopping one million users in just one year!