Homegrown consumer electronics brand Micromax is planning a comeback in the smartphone segment. The company has unveiled its subrand “in” as it hopes to take on the Chinese handset makers backed by policy support from the Indian government.

Micromax started operations in 2008 and by 2015 had become a global Top 10 handset maker, according to research firm Gartner. It had a 20 per cent marketshare in 2016, with Hollywood heartthrob Hugh Jackman endorsing the brand.

But the fall was equally swift as the rise with Chinese brands Xiaomi, Oppo and Vivo muscling the Indian company out of the market.

In the second quarter of 2020, the three Chinese handset makers together commanded more than half of the smartphone shipments in the country, according to data from IDC.

The trio not only relied on e-commerce channels but also spent heavily on distribution and marketing in India.

The advent of 4G drastically changed the landscape and Micromax found itself not in a position to compete with the Chinese in a price sensitive market.

“With the other players like Nokia, Samsung, Sony etc, it was fair play. But the Chinese were burning money and we were not able to do that,” Rahul Sharma, co-founder, Micromax, told The Telegraph.

But Sharma sees the present global geopolitical situation and the thrust of the government in the domestic manufacturing of electronics as an opportunity for a comeback.

The central government has announced a production linked incentive scheme for large scale electronics manufacturing in the country with benefits in the range of 4-6 per cent for a period of 5 years.

“The PLI scheme is a fantastic move. We will be able to tackle the pricing war. Moreover the sentiment against China is also strong. India today needs a domestic smartphone option and we are in a position to offer that,” said Sharma.

The company has factories in Rajasthan and Hyderabad and plans to invest Rs 500 crore in expanding local manufacturing, research and development with an eye to produceg around 2 million phones per month.

“India is one of the top five mobile gaming markets in the world and with the ‘in’ brand we will provide a bona fide choice that will allow consumers to edge ahead with high performance oriented products, without infringing on privacy,” said Sharma.