Intex started its journey as an IT accessory supplier and has grown into a full-fledged consumer electronics and durables giant with a portfolio spanning across sixteen product categories comprising over 300 models. The key segments range from mobile phones to consumer durables to IT accessories.
Intex has been the third largest smartphone brand since Q4 2014 and able to maintain the spot in a highly competitive but growing Indian smartphone market. Intex’s market share in feature phone and the smartphone has been through on a declining spree with stronger competition from Chinese brands which have entered in India since last 12-18 months. However, Intex is ramping up its domestic assembly and manufacturing of mobile phones to become more cost competitive and control the design and quality of its products.
Intex Manufacturing Operations Overview:
To note, Intex has been manufacturing in India different products since over a decade now and been among the very few brands to start domestic assembly of phones in India. This has allowed Intex to take advantage of certain benefits amid the Indian government’s “Make in India” push.
Last week, Counterpoint Research analysts had an opportunity to visit Intex’s Noida mobile phone manufacturing operations, which is one of its five manufacturing facilities. Three out of five manufacturing facilities are located in Noida which commenced their operations in 2015 while the other two are located in Baddi (HP) and Jammu (J&K) with operations dating back to 2010 and 2004 respectively.
Manufacturing locations by Product Categories:
|Plant Location||Operations started||Area (Sq. ft.)||Products||Annual Capacity (Mn)|
|Baddi||2010||70,000||LED TVs, Feature phones, Mobile batteries and chargers||FP (8Mn),TV (0.6), Batteries(15), Chargers (8)|
|Noida – I||2015||50,000||Feature phones||15|
|Noida – II||2015||100,000||Smartphones||20|
|Noida – III||2016||50,000||Mobile batteries and chargers||25|
|Greater Noida (*Planned)||2017*||850,000||Phones, LED TVs, Washing machines, Mobile accessories|
The Noida plant which we visited focused solely on smartphone assembly and some of the highlights and observations of the tour are summarized as under
- Spreading across an area of 100,00 Sq. ft., the Noida smartphone manufacturing plant is the biggest among all five Intex plants. It employs close to 620 workers and 25 engineers working in two shifts apart from the admin and additional staff.
- The factory assembles over 48 smartphone models. Most of the components are imported or locally sourced in a Semi-Knocked Down (SKD) format except for few like LCD and TP which sometimes come in Complete-Knocked Down (CKD) format as well. The warehouse has a capacity of stocking more than a million components.
- As of now there are 10 assembly lines for smartphones with an annual production capacity of 20 million units and an output of 9 million units.
- Intex has uniquely installed one assembly line dedicatedly run by only women contributing handsomely towards women development and empowerment program to help them hone and develop their skills and make a difference.
- The Yield rate for the plant is 98.4% which is quite impressive as per Industry standards.
- The addition of automation in the assembly lines boosts throughput, cutting down the overall fitting, testing and QA time and also ensuring higher precision. We haven’t seen this in many of the OEM production units we have visited so far.
- Once the assembly process is over and the units are packed, certain samples are then taken to lab where they undergo a series of rigorous tests including drop testing, pressure testing, touch responsiveness testing, vibration and humidity tests
Overall it was a great experience visiting the Intex Noida Plant, it was great to see how the phone manufacturing process works in India and how companies like Intex are providing employment to the workers, along with training them for a good future.