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India’s third largest mobile handset vendor Karbonn Mobiles is planning to offload a 15-20 per cent stake to fund overseas expansion.
According to Shashin Devsare, Executive Director, Karbonn, the company has already been approached by several private equity players.
However, it is yet to take a call on whether to opt for private equity or bring in a new partner.
A final call is likely to take place by the second half of this fiscal (around September).
“Apart from PE placements, we are also exploring the possibility of bringing in a new partner,” he told Business Line without specifying the amount that the company was looking to raise.
Headquartered in Delhi, the ₹4,500-crore Karbonn Mobiles is a 50-50 joint venture between Jaina Group (of Delhi) and Bangalore’s United Telelinks Ltd.
Market sources indicate a previous attempt by the company to raise funds failed due to the economic downturn.
Overseas foray According to Devsare, overseas expansion would include 25 new countries across in South East Asia, West Asia, Africa and Eastern Europe. Existing operations in some overseas countries would also be strengthened.
Currently, Karbonn handsets are available in 40-odd countries. Expansion would be through a mix of retail sales and handset bundling (where the handset cost is subsidised through various data schemes by the telecom operator).
India plans Meanwhile, the company is expecting a sharp increase in turnover (to ₹8,000 crore) this fiscal, riding on smartphone sales.
“Currently, smartphones contribute 30 per cent of our revenues. We expect the share to improve to 50 per cent by this fiscal,” he said.
It would invest ₹300 crore (up from ₹250 crore last fiscal) for brand-building in FY-15. Plans are also afoot to ramp up its service centre network from 800 to 1,000.
Karbonn, at present, outsources handsets from China. Manufacturing in India will be explored once the parts and components eco-system develops, Devsare said.
New devices As a part of its strategy, Karbonn is exploring a possible foray into the wearable devices segment in India and globally through health monitoring and fitness offerings.
Wearable technology or devices are clothing and accessories that incorporate computer and advanced electronic technologies.
The company, he said, is “actively monitoring” a possible foray, but did not specify a timeframe.
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