The BK Modi Group’s S Mobility (formerly Spice Mobility Ltd) is now switching to being a technology company focused on the mobile Internet space and plans to complete the first phase of switch by the end of this month.
The roadmap for the switch to become a mobile phone Internet company includes having a global supply chain for sourcing efficiencies and R&D support. It currently has 1,200 outlets in and outside India.
Spice will invest Rs. 1,000 crore in this fiscal for building new offices, expanding its retail portfolio, product innovation, R&D and buying companies. Around Rs.120 crore worth of shares would be set aside for employees in the employees’ welfare trust pursuant to the approved Scheme of Amalgamation.
Dr B K Modi, Chairman of the Singapore-based S Mobility, said here that mobile phone-based Internet can enable India achieve double digit GDP growth rate by capitalizing on the young population of the country.
He said India has the largest youth population with 370 million under 14, greater than China's 230 million, and equivalent to 20% of the global youth population. The Indian youth is shifting from the basics of roti, kapda and makaan as they now also need mobile phone-based Internet to be fully productive.
The BSE and NSE-listed Spice had recently acquired local companies in Bangla Desh, Thailand, Malaysia, Singapore and Indonesia. The switch would leverage Spice Group’s businesses across sectors and geographies in a bid to catapult the historically neglected i2i economies-in the countries between Indonesia to Ivory Coast in Africa, which now have 65% of global youth population-to emerging digital economies with mobile Internet.
He said the Group already has subsidiary and associate companies in the i2i region. The switch would bring them under one fold, making Spice a truly multinational company operating across Africa, Middle East, the Indian subcontinent and South-East Asia. This would help double the Spice Group revenues in the next two years.
India's move to achieve the 830 million strong mobile phone subscriber base is far out-stripping the personal computer industry and is a harbinger of a paradigm shift in the developing nations of the world.
Sectors ranging from finance, education, entertainment and healthcare will evolve into mobile Internet businesses. For the last two years, Spice Mobility has been putting together the building blocks to leverage this paradigm shift, Dr Modi said.
Spice devices enjoy a 22% market share in some of the northern Indian states. To replicate this success across the country Spice is creating seven clusters. This will give the required focus to meet the regions business requirements and be closer to the customers.
Spice Mobility is the flagship of the Spice Global businesses, offering a combined experience of devices, digital lifestyle, retail, mobile VAS and Apps to its customers across i2i geographies.
It is credited with launching several firsts, including the Dual SIM handset and first Android handset in India.