The Indian consumer electronics firm Micromax plans to venture into the new age sectors including AI and IoT, to diversify its business beyond its core operations. The company’s co-founder Rahul Sharma told The Economic Times, that its manufacturing arm Bhagwati had acquired Vivo’s Greater Noida-based mobile phone factory. The company is up with a scheme to manufacture its originally designed handsets, automotive parts, and IT hardware using the facility. This strategic shift is driven by the company's goal to stay relevant in the evolving tech landscape and leverage emerging technologies to fuel growth.
While revealing the company’s further action plan, Mr. Sharma revealed that a joint venture between Micromax and a Taiwanese memory chip maker is under development hoping to bring down a sharp decrease in the cost by innovating AI hardware space with custom-made storage and memory solutions. In addition, Micromax is all set to disrupt the content space with its OTT platform with multiple streaming apps under umbrella branding. For the OTT by Micromax, consumers have to pay once to access all content, unlike the current pattern where consumers have to individual fees for every app. For the development, the OTT players are already hooked in alongside a revenue-sharing agreement.
While integrating AI into its products, the company is determined to tap into the growing demand for smarter technologies across various sectors, including healthcare, consumer tech, and manufacturing. This move aligns with the larger trend of Indian companies embracing AI and other advanced technologies to innovate and stay competitive in a rapidly evolving global market. By leveraging AI, these companies aim to improve operational efficiency, enhance customer experiences, and offer cutting-edge solutions tailored to industry-specific needs. Micromax’s foray into AI reflects this broader shift toward digital transformation across India's business landscape.
Without naming the partner company, Mr. Sharma confirmed that Bhagwati will hold the majority stake in the partnership and oversee operations while sourcing technology and designs from the ODM partner. Sharma will personally take on the role of chief executive.
The Indian manufacturing landscape, within the last decade especially consumer electronics has grown significantly with the government’s Make in India initiative that has encouraged manufacturers to join the ecosystem. Mr. Sharma believes that the joint venture will significantly contribute to India’s efforts to become a global manufacturing hub. Another report by ET suggests that Bhagwati has a separate joint venture with China’s Huaqin, one of the leading ODMs responsible for designing a large number of smartphones sold worldwide, and has already received approval from the government.
The investment by the partnership with Taiwanese company Micromax ranges from a few hundred crores and aims at taking inspiration from the trajectory pattern set by NVIDIA in the field of AI. Without revealing the name, the reposts suggested that the whole AI segment will be led by a former executive of Seagate and HP Enterprises, with an office in Bengaluru, and aim to serve government units and industrial houses in India.
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