ET BureauNEW DELHI: Chinese smartphone maker Gionee plans to invest Rs 500 crore to set up a manufacturing facility in India, a top official said.
In addition, the company, which claims to be clocking roughly Rs 400 crore worth of sales every month, will spend Rs 200 crore on marketing and advertising during Diwali and a similar amount for the remainder of the year after November, besides launching nine models in this financial year.
"We're looking to set up our own manufacturing unit with an investment of Rs 500 crore that will have capacity of 20-30 million units a year," Gionee India managing director Arvind Vohra said.
Gionee presently assembles more than half of its phones through contract manufacturers Foxconn and Dixon. Plans to set up its own manufacturing facility may take a couple of years to fructify, Vohra said.
Chinese mobile phone companies are eating into sales of Indian and multinational manufacturers and Gionee wants to double its market share by March next year from the present level of 5%. It is pinning its hopes on its marketing budget, the reach of about 8,000 retailers in the offline market and its first brand ambassador, actress Alia Bhatt, who has been signed on for two years, to achieve this target.
"This is the beginning of our festive season. Three more launches will come till Diwali and for this launch alone, I'm spending $10 million (Rs 66 crore)," Vohra said while introducing the 5.5-inch S6s smartphone priced at Rs 17,999. The phone will be available on online retailer Amazon and in the offline retail network at the same price.
On the back of the new phones, the company expects to double its monthly sales to a million units and increase its average sale price to between Rs 9,500 and Rs 10,000 from Rs 8,000 at present.
Gionee's annual revenue is expected to rise by almost 50% to Rs 4,800 crore this financial year if it continues selling half a million units every month at an average price of Rs 8,000 each.
Vohra said the company was not keen on single-brand retailing because it has a presence across 40,000 stores and 12,000 in-shop locations.
In addition, the company, which claims to be clocking roughly Rs 400 crore worth of sales every month, will spend Rs 200 crore on marketing and advertising during Diwali and a similar amount for the remainder of the year after November, besides launching nine models in this financial year.
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Gionee presently assembles more than half of its phones through contract manufacturers Foxconn and Dixon. Plans to set up its own manufacturing facility may take a couple of years to fructify, Vohra said.
Chinese mobile phone companies are eating into sales of Indian and multinational manufacturers and Gionee wants to double its market share by March next year from the present level of 5%. It is pinning its hopes on its marketing budget, the reach of about 8,000 retailers in the offline market and its first brand ambassador, actress Alia Bhatt, who has been signed on for two years, to achieve this target.
"This is the beginning of our festive season. Three more launches will come till Diwali and for this launch alone, I'm spending $10 million (Rs 66 crore)," Vohra said while introducing the 5.5-inch S6s smartphone priced at Rs 17,999. The phone will be available on online retailer Amazon and in the offline retail network at the same price.
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On the back of the new phones, the company expects to double its monthly sales to a million units and increase its average sale price to between Rs 9,500 and Rs 10,000 from Rs 8,000 at present.
Gionee's annual revenue is expected to rise by almost 50% to Rs 4,800 crore this financial year if it continues selling half a million units every month at an average price of Rs 8,000 each.
Vohra said the company was not keen on single-brand retailing because it has a presence across 40,000 stores and 12,000 in-shop locations.
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