Olive Telecom which could be perceived as a potential competitor of Apple iPhone is considered India’s leading Convergence Solutions Device Developer. The company is expected to generate high returns in terms of revenue from its operations in India. At least 40% of its revenues are anticipated from our country. This owing to the launch of smart phones such as the 3G tablet, OlivePad VT-100 which is set to hit the markets by the month end with the speculation of 100,000 of these units to be sold worldwide. Olive’s intention is to release 2 to 3 new devices every month.
The entry of the telecom major into the mobile handset market was delayed with a large number of mobile phone players already having made a mark in this sector. Yet, the seven month old firm has cracked deals with 28 carriers worldwide and has so far sold 20 million devices with plans of selling 10 million handsets more this year. Most or all of its smart phone devices are run on Google’s Android operating system priced between the range of Rs 21,000 and Rs 25,000. Olive as a brand aims toward becoming a $1 billion company by the year 2012 from as many as 15 countries and 100 global operators. Its current revenue stands at $110 million.
Olive’s forecast of a hike in its incoming funds (revenues) is also strongly based on its presence in the Indonesian and African markets with plans of expanding its operations in Russia and operations. The company in addition to all this, plans brand development and research campaigns by spending as much as Rs. 100 crore. The company is looking out for potential investors with an intention of buying a minority stake in the telecom major and is expected to sign a deal later this year. And the investing company is quite obviously, anticipated to be a specialist in the telecom sector which shall serve the purpose of value addition.
Looks like Olive has it all planned out. Or has it?
It is essential to remember that the industry that Olive operates in (mobile phone industry) is inflicted by a plethora of brands. And by plethora I mean as many as 170 mobile phone brands that constantly battle it out to achieve successful returns in terms of sales, profits, brand recognition and a lot more. With even the top ranked companies such as Nokia facing intense competition from various mobile phone brands, it is not going to be as simple and easy a task for Olive Telecom to achieve successful growth as it seems to have planned so. However, as the saying goes “a good beginning is considered as half the job done”; let’s hope that the good beginning that Olive has had perpetuates.
