CHAPTER 1

INTRODUCTION

1.1OVERVIEW OF INDUSTRY AS WHOLE

Micromax has entered into handset market in 2008 and within
6 years it has become the second largest manufacture in India.
In this period it has focused mainly on rural market and has
become the leader in the same. Now they have started to
expand to the international market. This plan incorporates
innovative strategies that will utilize opportunities and address
weakness as outlined in the situation analysis. Micromax is
planning to launch an IPO of 2.15 crore shares to raise around
Rs 2270 million.
1.2 PROBLEM FACED BY MICROMAX
Sustenance and Innovation As new players are entering the
market, competition is becoming stiffer. To sustain in the
market one has to be always come up with innovative mobiles.
For that lot of money have to be incurred in R&D process.
Micromax had to face the same difficulty. That’s why company
has planned to raise money from stock market by way of IPO.
Company Micromax IPO, Forthcoming IPO 2011India’s biggest
domestic mobile handset seller Micromax In formats is
expected to go public early in 2011. The company filed its
prospectus late last month. The company is expecting to raise
426 crore through the offer. The company will use 50 percent
of 25 the IPO proceeds to setup a handset manufacturing plant
in India while the rest would be spent in areas such as
marketing and expansion.
Micromax, according to IDC, has an 8.1 percent market share in
India and is now valued at over $1 billion. JM Financial,
Citigroup, Edelweiss and Nomura are the book running lead
managers to the issue. For the year ended March 2010,
Micromax had sales of 1,600 crore on selling over 70 lakh
handsets, with a net profit of 200crore, as against revenue and
profit of 350 crore and 35crore respectively for the previous
year.
1.3 SWOC ANALYSIS OF ORGANISATION
Strengths
Micromax is No.1 in terms of market share in terms of mobiles,
it captured Samsung market share by superior innovation in
Smart Phones’ Micromax is financially strong and stable
company. The production process and process of inventory
management are consistent with industrial standards. The
brand value increased by 80% in last three years The Company
enjoys wide range of product portfolio which includes Mobiles,
Tablets, Television, Data Card and other accessories. Micromax
holds significant market share in most of the product
categories. Micromax is best in terms of technology. It was first
to introduce dualsim mobile phone, first motion sensor phone,
first universal remote phone. Micromax took advantage of 26
growing economy of Asian market by setting up manufacturing
plant in India there by reducing logistics and supply chain
Weakness
Micromax needs improvement in defining the vision, mission
and strategic corporate objective. Marketing management
needs improvement in all the facts of marketing HRM also
needs improvement in all the facts of human resource
management Chinese products focus on economies of scale
and dump into Indian market for lesser cost Online stores
which sell a wide range of products are giving better deals as
they don’t incur cost in distribution channel.
Opportunity
Micromax is reasonable equipped to take care of technological
changes Micromax is maintaining good international
relationship with countries and local Micromax has future plans
for customized phones in the Indian market. The population is
growing so as the demand for mobile phone demand is also
growing. The financial position is strong and there is a scope of
entering into unrelated diversification
Challenges
Regulatory issues and safeguarding of property rights was main
threats in legislation The competitor like Nokia are focused only
in one segment Threats from Chinese Products Retail chain like
Bigbazar sell consumer electronics in low cost strategy which is
procured in bulks from foreign market.
1.4 COMPLETE ANALYSIS
Micromax is gaining ground at a tremendous rate in the
domestic as well as global mobile market
 Micromax showing good sign of grabbing every possible
opportunity at its hand (e.g. IPL 2010)
 ` If the strategies are implemented effectively, it may clinch
up the ladder, to become the leader in
 domestic market incoming few years.

CHAPTER 2
CONCEPTUAL DISCUSSION
 CHAPTER 3
METHOLOGY
A research design is the arrangement of conditions for
collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in
procedure. Research in a common parlance is a search for
knowledge. Research is an art of scientific and systematic
investigation. Thus research comprises defining and redefining
problems, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data, making deductions
and reaching conclusions. Research methodology is the
arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research
purpose with economy in procedure. Research Methodology is
the conceptual structure within which research is conducted. It
constitutes the blueprint for the collection measurement and
analysis of the data.
Types of research used:
Descriptive Research:
 In the study descriptive research design has been used. As
descriptive research design is the description of state of affairs,
as it exists at present. In this type of research the researcher
has no control over the variables; he can only report what has
happened or what is happening Descriptive research designs
are those design which are concerned with describing the
characteristics of particular individual or of the group. In
descriptive and diagnostic study the researcher must be able to
define clearly what he wants to measure and must find
adequate method for measuring it. Sources of Data: The
sources of collection and analysis to be used are those data
(a) that have already been assembled and recorded; and
(b) that still requires assembling and recording. The former
kind of data is called “Primary Data” while the later kind of data
is called “Secondary Data”.
Innovations
First Long Battery Life Phone with 30 days battery backup
 X1i Marathon Battery phone with 30 days standby time &
17 days Talk time 10 First Dual SIM Dual mode active Phone
(GSM+CDMA)
 Micromax GC700 is the first GSM + CDMA Mobile phone
First Gaming Device
 G4 Gemmulation phone with motion sensor gaming like Wi-
Fi First Women’s Line of Devices
 Q55 Bling phone- First women’s phone First Universal
Remote Control Phone
 X235 With Universal Remote Control for TV, DVD, AC in your
phone First phone with built-in blue tooth

 Micromax X450 Van Gogh – A stylish phone that integrates a

detachable Bluetooth headset in its sleek design First
Superphone with Gesture Control
 Created a new category called ‘Superfone’ with Gesture
Control, powered with 1GHz dual core NVIDIA Tegra 2
Processor
Sources of Data:
The sources of collection and analysis to be used are those
data
(a) that have already been assembled and recorded; and
(b) that still requires assembling and recording. The former kind
of data is called “Primary Data” while the later kind of data is
called “Secondary Data”.
I. Primary Data:
Primary data is the information which is received by the
researcher from the actual field of research. The data in the
given study are obtained by means of questionnaires. In some
fields primary data are collected through interview and
observation methods. The observation method, for collecting
primary data, may be both participant and nonparticipant. Such
data are known as primary data. The primary source
information is collected through Internet, Direct observation,
Questionnaires, Schedule and Interviews methods.
II. Secondary Data:
Secondary data are the information which is obtained directly.
The researcher does not obtain them himself or directly. Such
data are generally collected form published and unpublished
material. Secondary data gathered from information’s collected
from the individuals and institutions through personal diaries,
letters and survey documents etc.
There are various sources through which secondary data is
collected such as Biographies, Diaries, Public Records, Published
Data, Journals and Magazines and Newspapers.
This research project totally focuses on the Secondary Data.
The secondary data for the given study is collected through the
Reference Book mentioned along with various websites
including the official website of the Micromax. In this study
data have been taken from various secondary sources like:
 Internet
 Books

 Magazines
 Newspapers

 Journal