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At a time when PM Modi is emphasizing on ‘Make in India’, India’s Micromax is struggling to survive and expand in the smartphone market.
By Himank Sharma
MUMBAI (Reuters) – A year ago, Micromax vaulted past Samsung Electronics Co Ltd to become India’s leading smartphone brand. Today, its market share has nearly halved, several top executives have resigned, and the company is looking for growth outside India.
In Micromax’s slide to second place is a tale of the promise and peril of India’s booming but hyper-competitive smartphone industry.
India is the world’s fastest-growing smartphone market. Shipments of smartphones jumped 29 percent to 103 million units last year.
Rapid growth has helped nurture a crop of local brands, led by Micromax, that outsourced production to Chinese manufacturers. Now, as Samsung rolls out more affordable phones, the same Chinese factories are entering the Indian market with their own brands, depressing prices and forcing Indian mobile makers to rethink their strategies.
“What the Indian brands did to the global brands two years ago, Chinese phone makers are doing the same to Indian brands now, and over the next year we see tremendous competition for Micromax and other Indian smartphone makers,” said Tarun Pathak, analyst at Counterpoint Research in New Delhi.
Micromax, which was founded in New Delhi by four partners in 2000 but only began selling mobile phones in 2008, built its market share by working with Chinese manufacturers such as Coolpad, Gionee and Oppo to offer affordable phones quickly. In 2015, it launched more than 40 new models.
In 2014, the founders brought in outside managers to lead the company at a time when Micromax was challenging Samsung to become the largest mobile phone maker in India.
But tensions arose soon after between founders and the newly hired executives, six former executives told Reuters. These conflicts undermined Micromax’s attempts to raise funds for expansion, say former executives. Last May, Alibaba walked away from a mooted $1.2 billion purchase of a 20 percent stake, citing a lack of clarity on growth plans, according to one executive involved in the discussion. Micromax co-founder Vikas Jain said in an interview with Reuters this week that the company and Alibaba disagreed on a future road map.
Alibaba declined to comment.
Former executives said the lack of fresh funding undermined a proposal by the new executives to move Micromax’s research and design operations, which had previously been outsourced, in-house. The move was intended to help Micromax differentiate itself from generic Android clones.
“We hired about 80-90 people in Bangalore to do in-house software and design, but with no money from the investors and little interest from the founders, that team fizzled away and that office has been partially shut down now,” said a former executive.
After Alibaba walked away, Micromax struggled to attract other investors who would have been key to Micromax’s plan to invest in software R&D and hardware design. The company was forced to scale down the in-house R&D project, a top executive involved in the fundraising plan said.
At least five senior executives have resigned since November. The latest was Vineet Taneja, chief executive since 2014, who quit last week.
“THE WHOLE INDUSTRY IS SUFFERING”
Meanwhile, Chinese handset makers, including Coolpad and Oppo, to which Micromax outsources its manufacturing, were sharpening their focus on India. Samsung, too, began to introduce more affordable models there.
In 2015, Chinese brands doubled their market share to 18 percent, according to Counterpoint Research, taking away business from Indian budget phone makers such as Micromax, Intex, Lava and Karbonn. Indian brands’ market share fell from 48 to 43 percent last year.
“Right now the whole industry is suffering because of the Chinese phones,” Jain told Reuters. “We have seen large write-downs happening on inventory in China, and that inventory is being passed on to India at a markdown.”
Chinese phone makers including LeEco, Xiaomi and Lenovo have also partnered with e-commerce companies including Amazon India and Flipkart to sell phones directly to consumers, saving on distribution and sales and reaching new online shoppers directly.
In the final quarter of 2015, Micromax’s shipments fell by 12.1 percent, against growth of 15.4 percent for the sector, according to industry tracker IDC. Micromax’s share of the smartphone market fell to 13 percent in the fourth quarter from 22 percent at its peak in 2014, according to IDC.
Micromax, which is privately held and does not disclose financial information, maintains it is profitable. Founders Jain, Rahul Sharma, Rajesh Agarwal and Sumeet Arora still control about 80 percent of the company. They have raised nearly $90 million from investors in the last five years.
Facing competition from both Samsung and inexpensive Chinese phones, Micromax plans to increase production in India. Jain said that the company plans to double local manufacturing output from 1.5 million units to about 3 million units a month over the next six to 12 months.
Already a top-10 brand in Russia, Micromax is seeking a partner to help it expand further outside India and diversify into televisions and tablets.
“Micromax needs to diversify geographically and also needs to diversify product lines,” said Neil Mawston, executive director of the global wireless practice at London-based research consultancy Strategy Analytics. How well it manages that diversification, Mawston says, will be key.
(Reporting by Himank Sharma; additional reporting by Paul Carsten; Editing by Alexandra Harney)
By Prerana Agarwal Saxena
In all the wedding excitement, it's easy to overlook the impact a wedding has on the environment. While everyone is making their big fat Indian wedding dreams come true, they are also adding their carbon footprint and undue energy consumption. Modern couples are now looking for ways to have a wedding with a sustainably conscious mindset. It's become about incorporating less waste, locally sourced and seasonal food, natural materials over the use of plastic. Mindful wedding planning and decor includes the use of recycled paper and goods along with eco-friendly venue needs. Check out this quick guide to achieve a sustainably conscious wedding without compromising on luxury:
Choose locally sourced material to uplift artisans
Sustainable can be luxurious too, incorporate some native flavour into the decor and theme. With the use of locally sourced materials and local artisans coming into play, the wedding instantly becomes sustainable. Include the work of local vendors ensure minimal packaging requirements, thus saving on unnecessary plastic and lamination. It also decreases the need for transporting elements from other cities and hence lowers the carbon footprint. For instance, at one of our weddings, we made use of sand art for a setup in Jodhpur. This helped promote local work while also being environmentally friendly with zero wastage of other materials. In another instance from Rajasthan, the traditional glass-blown technique was used to build decor items while giving a cultural touch to the destination wedding.
Sustainable can be luxurious too, incorporate some native flavour into the decor and theme. | Photo by Jason Coudriet on Unsplash
Say yes to recycling
One should be mindful and avoid the use of plastic and other non-recyclable materials in decor wherever possible. It can be a small step such as making a conscious switch from plastic water bottles to copper jugs or glass bottles. Also use artificial floral decor thus minimising the wastage produced from real flowers. This recyclable decor is then donated to various NGOs, further ensuring sustainable use of resources. Such steps, however small they might be, keep the environment free from the release of any additional carbon footprint.
One should be mindful and avoid the use of plastic and other non-recyclable materials in decor wherever possible. | Photo by Ravin Rau on Unsplash
Go for zero-waste wedding decor
Make use of fabric as it enhances the elegance of the wedding while being sustainable. Include vibrant colours apt to the theme of the wedding and bring in bright sprightliness with breathable fabrics. Ensure to include LED lights for lighting. They can be incorporated as string lights or be used on passageways with innovative decor items. They also help conserve energy and bring in soulful energy for nighttime decor. Choose virtual invitations, keeping up with the digital times. Make a conscious choice of plated dinner menus rather than a buffet as they allow less wastage of food and ensure enough food for guests in attendance.
LEDs can be incorporated as string lights or be used on passageways with innovative decor items. | Photo by Annie Spratt on Unsplash
Include Sustainable Gifting
Gift sustainable wedding favours -- gifts that grow. Offering a plant or a succulent, is a great idea. One can also gift recycled organic fabrics and cutlery or zero-waste kitchen and bathroom essentials to use in their homes as some distinct gifting options.
Gift sustainable wedding favours -- gifts that grow. | Photo by Kira auf der Heide on Unsplash
Acting in the best interest of the environment and the society, Theme Weavers Designs has started a social cause, Weaving Hope, where a part of their earnings along with food and decor are donated to social communities. Royal Rendezvous, is an event started by us to put India on the Global Map, inviting international wedding planners to India to experience the rich culture and heritage, also employing and displaying the work of local artisans to this international audience.
By applying the values of sustainability, you can reduce the energy consumed and the resources used as much as possible. Go ahead and have a luxurious zero-waste wedding and navigate into the world of green living! (IANS/ MBI)
Keywords: Luxurious , Gift, sustainable, wedding favours, gifts that grow. Gifting, recycling, locally sourced, material. zero-waste
The Tamil Nadu health department has administered 16,43,879 lakh doses of vaccine in the second mega vaccination camp organised by it. The state public health department in a statement on Sunday said that this has taken the total vaccination to one crore since the beginning of September till date. The vaccination was administered from 7 a.m. till 7 p.m. and the compiled data was made available late at night.
The health department officials also said that as the state has almost exhausted its quota of vaccines, there would not be any vaccines on Monday. Regular vaccination will resume after the vaccine supplies arrive from New Delhi, officials said. The state health department had expected to vaccinate 15 lakh people on Sunday in 18,824 centres spread across primary health centres, anganwadis, noon meal centres, government hospitals, schools and some auditoriums.
The health department officials also said that as the state has almost exhausted its quota of vaccines, there would not be any vaccines on Monday. | Photo by Mat Napo on Unsplash
Of the 16,43,879 people who were inoculated, a total of 10,85,097 received their first dose and 5,58,782 their second dose of vaccine, the statement said, A total of 9,66,568 people in the age group of 18-44 were vaccinated on Sunday and vaccines were administered on 5,02,578 people aged between 45- 59 in the mega vaccine camps.
State health minister Ma Subramanian, who inaugurated the vaccination at Pollachi, also visited the centres in six districts -- Coimbatore, Erode, Namakkal, Tiruppur, Dharmapuri and Salem. The state government, according to the health minister, is to receive the next allotment of vaccines on September 21. Minister while speaking to IANS said, "We will be receiving the next allotment of vaccines on September 21 itself and we will resume vaccinations immediately. The state has already touched one crore vaccine-mark in the month of September till date." (IANS/MBI)
Keywords: COVID, vaccine, vaccination camp, Tamil Nadu, India, vaccinated, mega camp
Festivals are just around the corner and while you brainstorm about OOTDs (outfit of the day), don't forget the right makeup. Hanisha Kapoor, COO, ArchiesBeauty.com shares makeup trends experimented by these Bollywood divas throughout 2021 for inspiration. While some stuck to the classics, others mixed it up... take a look:
The Classic Red Lip
We don't see a future where classic red lips go out of fashion. The right way to achieve this celebrity look is to focus on accentuating your lips and keeping the rest of the face minimal. Give your lips a good scrub to plump them, moisturize and follow it up with a red lip liner to define the shape of your lips. Now go on with the perfect shade of red and finish your look with a slick of eyeliner, minimal concealer, and foundation.
We don't see a future where classic red lips go out of fashion. | Photo by Ina Garbé on Unsplash
No Makeup Look
Deepika Padukon is the perfect example of a no-makeup look. This natural beauty does a wonderful job of achieving the minimal soft look by softly cover any dark spots or blemishes and highlighting features she's most proud of. To achieve this start with concealer and use small dots to brighten your darker areas like under eye, corner of the nose or upper lip, and any visible spots, and set it up with loose powder. Apply a soft pink lipstick, light blush, and mascara.
Deepika Padukon is the perfect example of a no-makeup look | Wikimedia Commons
This look shouts pink. When it comes to rosy looks, Janhavi Kapoor does a phenomenal job. Everyone should try a rosy look once in a while. As we are focusing on only one shade, this look is pretty easy to achieve. Bring out your favourite pink lipstick, favourite pink blush, and a matching shade of eye shadow. Start with the base - concealer, and foundation and set it up with loose powder. Follow it up with eyeshadow, lipstick, and blush. Remember to draw a line by not using any pink mascara, eyeliner, or a bold shade of lipstick, as this is meant to be soft on the eyes.
When it comes to rosy looks, Janhavi Kapoor does a phenomenal job. | Wikimedia Commons
Glass Skin Makeup
The glass skin makeup is inspired by Korean skincare. This look is slightly complex with an equal focus on skin before makeup, so slather on those moisturizing serums and creams to prep your skin first. Start with a highlighting primer, keep your foundation and concealer minimal to avoid looking cakey. Follow it up with soft blush & nude lips and lots and lots of highlighter. Use the highlighter on the main points of your face, like upper cheekbones, the centre of the forehead, the tip of the nose, cupid bone, and chin. If you are feeling a bit extra, don't hesitate to put some on your shoulders and collar bones. This celebrity makeup look makes your skin glow without the need for a spotlight.
The glass skin makeup is inspired by Korean skincare. | Photo by 邱 严 on Unsplash
Pop It Up
Put a zing to your party look with the pop of funky colour. This look is meant to get you in the mood of partying all night. This works with your eye makeup while keeping the rest of the face minimal. Start with the base - concealer, apply a bit extra on your eyelids to make the colour pop. Don't mind going the extra mile and colour blocking your eyes with complementary colours on eyelids and under the eye. Apply nude lipstick and a soft blush to balance your look.
This look is meant to get you in the mood of partying all night. | Pixabay
(Article originally published by N. Lothungbeni Humtsoe) (IANS/ MBI)
Keywords: Celebrity, makeup, Deepika, Jhanavi, Korean, Red Lipstick, Glass Makeup, Pop makeup