Chairman | 20 May 2004
"We have signed up around 15 dealers in the country who in turn are networked with over 1,600 distributors across all cities. The cell phones will be available at all leading retail stores."
The domestic telecom industry has grown at a remarkable pace in recent years, spawning a whole new generation of business opportunities for players, be they service providers or equipment manufacturers. Gurgaon-based Trust Telecom Technologies Pvt. Ltd, a subsidiary of Delhi-based Rs 600-crore Rajgarhia Group with business interests in areas such as steel, abrasives, synthetics, yarn, packaging and fabrication, stepped into the realm of telecom equipment marketing after entering into a tie-up with Chinese telecom major Kejian Corporation.
Trust Telecom Technologies will market Kejian GSM mobiles in India and rest of SAARC markets. The product offers a unique lifetime warranty and such other features that will put many competitor products in the shade. For its brand positioning in the SAARC market, MPG has been vested with the media responsibilities, while Mindspace is handling the creative duties.
Ranjana Gupta of exchange4media.com met with P K Rajgarhia, Chairman of the group, to get a cross-section view of the marketing plans for Kejian phones in the region. Following are excerpts of the interview:
Q. What is the reason behind your investments in the telecom sector?
The Rajgarhia Group has continually invested in all upcoming sectors like yarn, packaing, steel, etc. Telecom has been one of the fastest growing sector in the country and with increasing teledensity one saw a huge emerging demand for telecom handsets. The demand, we know, is fuelled by telecom penetration in the middle and lower economic strata. In this backdrop, we decided to enter the fray by entering into an exclusive tie-up with China-based Kejian Corporation to market GSM handsets in India and rest of SAARC region.
Q. How do you plan to reach out to the markets?
We have signed up around 15 dealers in the country who in turn are networked with over 1,600 distributors across all cities. The cell phones will be available at all leading retail stores.
Q. Have many models are you introducing in the GSM segment? Do you also plan to launch CDMA handsets in India?
We are launching four GSM handset models, both in different price bands. As for launch of CDMA handsets, the market is shaped by the service providers themselves. Such as, Reliance services are available on LG, Samsung, and Nokia handsets. At the moment we want to get established in the GSM domain and later on progress to CDMA. For this, it is not necessary that Kejian will be the partner. We are looking at other players too.
Q. What are your advertising plans for the product?
Mindspace is handling the creative duties of Kejian handsets. An extensive advertising campaign of the product will hit print media in June. Regional media will also be a part of the campaign. The life long guarantee of the product and its affordability will be the highlights of the campaign. An electronic campaign of the product will also hit national media soon.
Q. What marketshare are you targeting and when do you plan to achieve break-even?
An investment of around Rs 10 crore has been made by us in the venture and by the end of this fiscal we plan to capture around 5 per cent of the share. Talking about breakeven, I would say that within the coming two years it will be achieved.
Q. How do you plan to fight competition and what are your future plans?
The handset market is witnessing tremendous growth and as discussed Kejian through its quality and pricing will be able to build a brand for itself in the coming months. There are definitive plans of setting up a handset manufacturing unit in the country in the coming three years.