Lava sees 30% jump in sales in Q3; to invest Rs 2,615 cr in manufacturing

lava

Lava International, the mobile brand, said its revenue grew 23% to Rs 7,626 crore last year, bucking the general trend seen in Indian telecom handset brands.

In addition, the company saw strong growth in sales in the last three months, it said.

The total handsets shipped by the company in the three months from July to September this year was 7.1 million, up 30% from 5.4 million in the April-June quarter.

It has also become the No. 1 Indian mobile handset brand in Tamil Nadu, Gujarat, Rajasthan, and J&K by volume.

“Despite immense competition, we have done highest volume amongst all Indian mobile handset brands and have emerged as the Challenger brand across India,” said Navin Chawla, Chief Operating Officer, Lava International.

Most Indian brands have seen a decline in their revenue due to the entry of Chinese brands such as Xiaomi, LeEco, Vivo, Gionee and Oppo.

The entry of these brands has changed the landscape of the lower and mid-level handset market in India.

However, said Lava, last year was one of growth for the company.

“Lava increased its distribution width by 44% to 120K outlets in FY15-16 is working towards having 165K outlets by end of this financial year,” said the company.

The company has earmarked an overall investment of Rs 2615 crores for ramping up the existing manufacturing units in the next five to eight years.

With this, its overall production capacity will be increased to 216 million units per year, it said.

It is also planning to establish what it called the first Mobile Phone Design Center in India by end of 2017.

Lava is aiming 20 percent mobile handset market share by 2018-end.

That’s comparable to the total handset market in India at present, which is around 200-250 mln units per year.

This year, the company roped in Mahendra Singh Dhoni as its brand ambassador to launch its ‘Never lets you down’ brand campaign.