Intex Technologies is an IT Hardware, Mobile Phones and Electronics Company, headquartered at New Delhi. It has been ranked 87, amongst the 200 fastest growing IT companies in India by Data Quest. The company has a pan-India presence though its own network of 2 mother-warehouses, 29 branches, and 500+ service points. It has 8 business verticals which include mobile phones, computer peripherals, personal computers, consumer electronics, memory products, retail, enterprise and international business and has a product portfolio of more than 350 products.
Replying to Yash Ved of IIFL, Vinayak Kumar Lal says, “We are looking at getting private equity funding. We are also mulling over IPO to infuse more capital.”
Brief us about your business model?
Intex business model comprises of distributors and resellers. Presently, there are more than 3000 distributors and more than 20,000 resellers spread across the length and breadth of the country selling the following Intex products – Mobile Phones, Multimedia Speakers, Desktop Computers, TFT LCD and LED Monitors, Computer UPS, DVD Players, Headphones, Keyboards, Mouse, Web Cameras, etc. The network is managed through 29 Intex branches and is catered by a wide-spread network of more than 500 service touch points.
We also have an exclusive retail chain with the name of Intex Sqaure and have 33 stores pan India. The products are also available at more than 130 shop-in-shop counters at speciality chains and hyper markets. Some products are sold through Home Shop 18 too.
Are you planning to increase prices of your products?
Intex has recently gone for a 5-8 % hike in the prices of its IT Hardware Peripherals, TFT LCD Monitors and Computers. The Company enjoys a major share in the peripherals segment with products like Multimedia Speakers, Computer UPS, Headphones, Cabinets, Keyboard, Mouse to name just a few. This price hike has been executed to partially absorb the cost increases on account of various factors such as global increase in major raw material costs including copper, aluminum, steel & plastics; doubling up of shipping freight and component costs on account of appreciation of Chinese Yuan and depreciation of Indian Rupee.
What is the revenue mix?
A major chunk of the revenue comes from Computer Peripherals followed by Mobile Phones, Consumer Electronics, PC, Retail and Enterprise industry verticals.
Your expansion plans in domestic and global market?
In the states where we are already operating, the focus is now to appoint partners in subdivision and tehsil level. Our plan is to cover all 640 districts and expand the reseller network to 50,000 by next FY11.
For the opportunities in overseas market, we have recently set up a specialized division and have already established exclusive mobile phone outlets in Nepal and Bangladesh. Orders for some SAARC countries are also being executed. The international business will surely gain more momentum in the coming months.
Your IPO plans? How much are you raising via IPO?
We are looking at getting private equity funding. We are also mulling over IPO to infuse more capital.
Any plans to open new retail stores?
Intex launched its exclusive retail chain in Sep, 2009 with the name INTEX SQUARE. With in a year, we have set up 33 stores pan India. This does signify signifies Intex’s aggressive retail expansion strategy.
Along with Intex Squares, Intex’s products are also available at more than 130 hyper markets and specialty chains pan India, through a shop-in-shop presence. Intex’s policy of increasing the width and depth of its reach is also being supported by a major expansion in its service network and investment in its IT infrastructure for both sales & service.
What is the current debt?
Our current debt stands at Rs 287.6mn