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Micromax secures $10mn from China's Spreadtrum Communications
Micromax secures $10mn from China's Spreadtrum Communications
By: iMedia News Bureau

Spreadtrum Communications Inc, a leading fabless semiconductor provider in China with advanced technology in 2G, 3G and 4G wireless communications standards, has invested US $10 million in Indian mobile handset company, Micromax Informatics Ltd. In order to grow the market for innovative, value for money handset products in India and other emerging markets the two companies will work together through a joint R&D collaboration.

Until now, Micromax has typically launched phones that run either on MediaTek or Qualcomm’s chipsets. But, with this collaboration Spreadtrum will become one of the preferred mobile chipset suppliers of Micromax.

"We focus on delivering innovation to the consumer at affordable prices, and our partnership and collaboration with Spreadtrum supports our objectives of feature customization to local needs, rapid time to market, and innovation on value for money platforms," said Rajesh Agarwal, Managing Director of Micromax Informatics Ltd. "The Indian mobile industry is growing at a rate of 12% per year, and partnerships such as this one will help us both capture the growth opportunity within India as well as expand our distribution to other countries."

Micromax has an established sales presence across India and in Hong Kong, Bangladesh, Nepal, Sri-Lanka, Maldives, UAE, Kingdom of Saudi Arabia, Kuwait, Qatar, Oman, Afghanistan and Brazil. Ranked third as Indian mobile handset manufacturers, the company claims to be the 12th largest cellphone vendor globally. The Gurgaon based company ships over four million handsets every quarter. Micromax made its name in India by launching its dual-SIM phone portfolio when the likes of Nokia and Samsung had dismissed the category all together.

"Micromax's focus on unique, innovative features has allowed it to rapidly establish a leading position in the Indian and global handset market," said Dr. Leo Li, President and CEO of Spreadtrum. "Our mutual cooperation with Micromax will help us expand our reach in emerging markets and ensure that our R&D investments are closely aligned with the world's leading brands."

Earlier the company had raised Rs. 200 crore ($43 million) from three investors – Sequoia Capital, Sandstone Capital LLC and Madison India Capital in September 2010.

This investment is likely to open up Spreadtrum’s doors to the Indian market, where many home-grown brands aspire to become the next Micromax.