A thread on what happened to one of the most talked and hyped Indian phone company
1. It dates back to year 2000 when Micromax Informatics was founded as a software company by Rahul Sharma and his friends in Gurgaon who had just come out of college and wanted to venture into a "dot com" which was booming during 2000s.
2. It was that time when coin phone was a big trend which enabled people in remote areas to connect with family and friends. These phones looked like landline but didn't require the wiring as it was operated using a SIM and benefited multiple people with a single SIM.
3.Micromax became an important supplier to Nokia, who had then got the licence to install such phones all across India. These were used to set up call centres in India. Micromax rapidly rose!
4. In 2004, Nokia very soon sold off their business globally. But they still continued supplying the specialised technology to other telco companies like airtel etc. They also made Micromax branded phones and installed many in Jammu. Soon 10cr revenue for converted to 100cr.
5. In 2008, the founders saw a potential for mobile phones(keypad) in the changing market where Nokia was already a big player. Hence they started coming up with phones which met Indian specific demands like long battery, dual sim etc. Within no time went on to become a huge hit.
6. It also ventured into smartphones as the market changed slowly and in the year 2010 were among the first ones to bring budget Android phones to the masses, the A60s. Which have other big players like Nokia and Samsung run for their money.
7. In 2014, it dethrones Samsung as the largest mobile manufacturer/seller in India. 10th biggest in the world. The company is now valued upward of Rs. 21000 Cr making it the most valued tech startup in India, more than Flipkart.
8. By 2015, was a time where one couldn't not switch off the tv without seeing a Micromax ad on TV. It was literally everywhere. They got the sponsorship for most crucial cricket series. They even sponsored Bryan Adams concert. Also worth mentioning Karbonn Kamaal catch in IPLs.
9. Yes they were everywhere. They also got Hugh Jackman as their brand ambassador globally, a cherry on top. They were the first Indian company to make a mark in Russia. At this point, there was no looking back. Whatever they touch turned into gold and came up with TVs & ACs too.
10. But here is the twist in the story. A quick flashback as to how they made phones. Not many people know that Micromax never manufactured their own phones nor did they have their own R&D centre. Hard to digest the fact that a 21000Cr worth company couldn't make a single phone.
11. Here comes the term OEMs and ODMs(Google for yourselves). Micromax and other Indian companies like Karbonn, Intex, Lava, the big players which were among top 5 in India, unluckily had to heavily rely on Chinese companies like Oppo, Gionee, Coolpad to make phones for them.
12. These Chinese companies were way ahead of the time and had a good infra to make phone with advanced tech. They had complete control and knowledge over the design, manufacturing and after sale service. These companies also had their own factories and R&D centres.
13. Micromax also believed in selling the phones in batches as in 'order batch of say 100000 phones-> Sell them-> With the money earned order another batch-> Sell them *repeat*. It seems this was their core idea of making business.
14. There is something called MOQ or Minimum Order Quantity which Chinese ODMs follow to secure a deal to make phones for its customers. MOQ is a term which sets a minimum number of quantity to be manufactured by the Chinese ODMs(like Oppo) for its customers(like Micromax)
15. MOQ that Micromax agreed was for whopping 500000. Chinese suppliers could customise their products only if it was ordered in bulk quantities. So it was a big inventory problem.
16. And then came the launch of Jio in 2015. Along with that, also came free 4g internet which took Indian market by storm. When Jio announced it and made it free, the market went bonkers. But Micromax had already hugely invested in 3g and remember they have an inventory problem.
1. It dates back to year 2000 when Micromax Informatics was founded as a software company by Rahul Sharma and his friends in Gurgaon who had just come out of college and wanted to venture into a "dot com" which was booming during 2000s.
2. It was that time when coin phone was a big trend which enabled people in remote areas to connect with family and friends. These phones looked like landline but didn't require the wiring as it was operated using a SIM and benefited multiple people with a single SIM.
3.Micromax became an important supplier to Nokia, who had then got the licence to install such phones all across India. These were used to set up call centres in India. Micromax rapidly rose!
4. In 2004, Nokia very soon sold off their business globally. But they still continued supplying the specialised technology to other telco companies like airtel etc. They also made Micromax branded phones and installed many in Jammu. Soon 10cr revenue for converted to 100cr.
5. In 2008, the founders saw a potential for mobile phones(keypad) in the changing market where Nokia was already a big player. Hence they started coming up with phones which met Indian specific demands like long battery, dual sim etc. Within no time went on to become a huge hit.
6. It also ventured into smartphones as the market changed slowly and in the year 2010 were among the first ones to bring budget Android phones to the masses, the A60s. Which have other big players like Nokia and Samsung run for their money.
7. In 2014, it dethrones Samsung as the largest mobile manufacturer/seller in India. 10th biggest in the world. The company is now valued upward of Rs. 21000 Cr making it the most valued tech startup in India, more than Flipkart.
8. By 2015, was a time where one couldn't not switch off the tv without seeing a Micromax ad on TV. It was literally everywhere. They got the sponsorship for most crucial cricket series. They even sponsored Bryan Adams concert. Also worth mentioning Karbonn Kamaal catch in IPLs.
9. Yes they were everywhere. They also got Hugh Jackman as their brand ambassador globally, a cherry on top. They were the first Indian company to make a mark in Russia. At this point, there was no looking back. Whatever they touch turned into gold and came up with TVs & ACs too.
10. But here is the twist in the story. A quick flashback as to how they made phones. Not many people know that Micromax never manufactured their own phones nor did they have their own R&D centre. Hard to digest the fact that a 21000Cr worth company couldn't make a single phone.
11. Here comes the term OEMs and ODMs(Google for yourselves). Micromax and other Indian companies like Karbonn, Intex, Lava, the big players which were among top 5 in India, unluckily had to heavily rely on Chinese companies like Oppo, Gionee, Coolpad to make phones for them.
12. These Chinese companies were way ahead of the time and had a good infra to make phone with advanced tech. They had complete control and knowledge over the design, manufacturing and after sale service. These companies also had their own factories and R&D centres.
13. Micromax also believed in selling the phones in batches as in 'order batch of say 100000 phones-> Sell them-> With the money earned order another batch-> Sell them *repeat*. It seems this was their core idea of making business.
14. There is something called MOQ or Minimum Order Quantity which Chinese ODMs follow to secure a deal to make phones for its customers. MOQ is a term which sets a minimum number of quantity to be manufactured by the Chinese ODMs(like Oppo) for its customers(like Micromax)
15. MOQ that Micromax agreed was for whopping 500000. Chinese suppliers could customise their products only if it was ordered in bulk quantities. So it was a big inventory problem.
16. And then came the launch of Jio in 2015. Along with that, also came free 4g internet which took Indian market by storm. When Jio announced it and made it free, the market went bonkers. But Micromax had already hugely invested in 3g and remember they have an inventory problem.
