Micromax to Invest Rs 200 Crore in TS

By: V.V. Balakrishna

One of the 19 industrialists, who was given permit letter from chief minister K Chandrashekar Rao to start their units in the state is co-founder of Bhagawati Products Ltd (Micromax), a mobile manufacturing unit.

Micromax is expected to invest Rs 200 crore in three phases and to employ 1,000 persons in the first phase. It is likely to start its commercial operations from April next. But, why Micromax opted Telangana instead of AP or any other state?

“The mechanism to accord permissions to industries in Telangana is very transparent and speedy. Speed is one of the parameters that prompted us to start our unit in Ravirala in Rangareddy district,” Micromax co-founder Rajesh Agarwal told Express after he received the permit letter from the chief minister.

Micromax has another unit in Rudrapur in Uttar Pradesh. “Among all other states in the country, Telangana’s mechanism in according permissions is the best,” Agarwal said.

The other reasons for Micromax to zero in on Ravirala is that the location was just 20 km from Hyderabad. “Educational facilities are available in Hyderabad. The employees need not live away from the city like in other states. If we provide transport, the employees can live in the city itself,” Agarwal explained.

For Micromax, Hyderabad was a centrally located place and it could cater to the needs of customers in South and East India, because of Hyderabad’s air connectivity, Agarwal said.

On the plans of Micromax’s Telangana unit, Agarwal said they were planning to launch commercial operations next year.

“The government has allocated 36 acres and accorded permission within two weeks. The piece of land is identified and pricing of the land is yet to be finalised,” he said.

He added they would start commercial operations initially in five to six acres.

He said they planned to produce 1 to 1.5 million mobiles, 50,000 LED TVs and another 50,000 Tabs in Telangana unit. Micromax is planning to invest Rs 200 crore in the next three years. It will invest Rs 80 crore and provided jobs to around 1,000 in the first phase.

On the overall mobile market, Agarwal admitted that Intex was doing well in Rs 3,000 to Rs 7,000 price sector and he said that Micromax was also planning many models in that price range. “We are planning to bring out new models of mobiles every six months,” he said added they would support Prime Minister’s Make-in-India mission.

Source: The New Indian Express

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