Copyright © HT Digital Streams Limit all rights reserved. Companies Lava alone survived the Chinese onslaught. It is now looking for funds to enter into foreign competitors who want to bring in Lava to raise money for expansion when the overall market share and annual sales are subdued. Summary Lava targets a 10% market share by 2030. Funding and public listing efforts will be crucial to having a real chance New Delhi: Lava, the homemade smartphone and accessories brand, is in talks with investors to represent up to £ 500 crore ($ 58 million) in the coming months before he has a public list, a senior company manager. Lava International executive director Sunil Raina did not disclose the valuation for his current financing effort, but referred to an earlier effort. “During our listing effort in September 2021, Bankers awarded us a valuation of £ 14,000 ($ 1.7 billion),” he said. He also refused to reveal the probable valuation or a timeline to represent his public listing articles. “An initial public offer (IPO) will be a strategic step we will only consider if we build a certain scale,” Raina said. “To do this, we will invest additional funds in marketing and increase our presence in more markets with both online and offline retailers.” Read also | Lava Charts Fresh Listing Plans Lava wants to raise funds for expansion when its overall market share and annual sales are subdued, despite the government’s attempt to achieve local manufacturing in sectors. Data obtained by Counterpoint Coin, as well as estimates shared by Raina, indicated that Lava sold about 1.5 million smartphones in 2024. In the fiscal up to March 2024, the consolidated revenue of Lava International fell 25% to £ 3.646 Crore ($ 426m), and a net operation profit. The company also faced setbacks. In October 2023, former managing director Hari was arrested by the Enforcement Directorate in a money laundering investigation on China’s BBK electronic brand Vivo. In September 2021, Lava’s plan to become public was discontinued as the Securities and Exchange Board of India (Sebi) asked the company to review and submit its papers – without specifying which information was missing. FY25 was better, Raina said. Lava wants to raise funds for expansion when its overall market share and annual sales are subdued, despite the government’s attempt to achieve local manufacturing in sectors. “We expect this year to report 10% annual growth – both in terms of shipping and revenue of devices. About 80% of our sales are still coming from offline channels, but we will sharpen marketing and outreach efforts to reach out to a larger customer base,” Raina said. “In the FY26 we will also invest in software research and development (R&D) to create intellectual properties (IPS) -this is an important part of the earnings of a larger margin in the long run.” Read it | Budgets smartphones sell like hot cakes in a clumsy market “There have been setbacks, but since then we have revised our plate structure and re -aligned ourselves. We are a professionally managed company, so there is no conflict with how we function,” Raina said. Lava’s survival is important when the government seeks to introduce Indian electronic brands to the world and create a higher value in the domestic electronic market-which is constantly focused on low-cost, mass-scale mounting and repackaging of white tabs brought from abroad. Lava is also the only surviving Indian smartphone brand that has moved past the China on the Indian market from a decade ago, which brought the people like Xiaomi and Oppo to India. However, analysts have mixed views on lava. A senior analyst at a top market research firm, who requested anonymity because it works closely with the company, said that Lava’s goal of achieving a 10% market share in the industry by 2030 is a difficult, difficult order to scale. ” “The smartphone market is very stagnant in India, and industry stakeholders realize that India’s function telephone users are not necessarily a customer base that will go to smartphones immediately,” the analyst said. ‘In fact, it has been so for some time. The actual growth of lava will therefore come from mostly returning users – but any user who buys their second smartphone, or furthermore, always looks like a more premium device than a basic price of £ 10,000. But this is a very stationary segment – where will such steep growth come from here? ” Read it | Xiaomi India Eyes increased localization, Apple-like ecosystem data derived from counterpoint showed that Lava had a market share of 1% in India in 2024. Between 2022 and 2024, the domestic smartphone market expanded at a composite annual rate of 1.5% per annum. Raina projects Lava to reach a 10% market share by 2030. This would require a growth of almost 60% per annum compared to the current rate of 10%. However, Tarun Pathak, research director at counterpoint, believes that there is potential for growth. ‘Although the projection is probably too high, the small retailers and clients have good feedback on the revival of the brand. What Lava needs is a robust marketing campaign to shed his previous brand image and create a new one that shows its potential to stand neck-and-neck against Samsung, Xiaomi and others. ‘ Between 2022 and 2024, the domestic smartphone market expanded at a compound annual rate of 1.5% per annum. According to Pathak, Lava’s devices offer good quality. “But what is really needed for Lava is a hook – such as Samsung’s premium game, Xiaomi’s camera apocus or Oppo’s reliability marketing strategy.” And read | Very concerned about the arrest of Lava MD Hari to Rai: Rajeev Chandrasekhar with his planned fundraising and expansion, Lava watches a place in the big league. While a stagnant market threatens to play spoils, Lava does not focus on smartphones alone to increase revenue and margins. “We have our own assembly plants, which will only benefit from the center’s components scheme. It also gives us some margin, and we can also produce for other brands – as we have done before like Nokia,” Raina said. “It can give us extra income as a technology group. We also want to create our own IPS, start with software design and invest a lot in marketing to show customers the value of our brand.” Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #android Smartphone Mint Special
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