Lemon Electronics eyes 3-fold revenue growth to Rs 1,000 cr by 2020

Mobile firm Lemon Electronics expects to register nearly three-fold growth in revenue to Rs 1,000 crore by the end of fiscal 2020 as the company plans to ramp up handset production and foray in LED TV segment.

"We expect to have top line of around Rs 1,000 crore by financial year 2020. We are setting up a new manufacturing unit in Noida which will produce LED TVs as well," Lemon Electronics Chairman and Managing Director Kapil Chugh told PTI.

70 percent of our revenue will come from mobile phone segment and we expect 30 percent contribution from LED TV business, he added.

The company has been in the mobile business since the past one decade and has focussed on sales of feature phones.

Chugh said that Lemon Electronics is investing Rs 150 crore in setting up a new manufacturing unit.

Lemon Electronics already has a manufacturing unit for mobile phones in Greater Noida with a monthly production capacity of 6 lakh units.

"The existing plant is working with around 70 percent capacity utilisation.The new plant will commence its commercial operation by July 2019 which will increase total monthly production capacity of mobile phones to 10 lakh per month. The new plant will also be equipped to produce 10 lakh LED TV annually," Chugh said.

"At present smartphones contribute 10-12 percent in our total business. We expect contribution of smartphones to rise to 30 percent by 2020 and rest will come from feature phones. For branding we will continue to focus on retail counters, outdoors in our target business area," he added.

He said that the company has 450 distributors at present and plans to double it by FY 2019 to reach out to 50,000 retail counters.

The company is also setting up its own research and development centre in Shenzhen, China, in the next couple of months, Chugh said.