Our operations mainly consist of:
A. Distribution of the Mobile Phone Handsets (GSM & CDMA) of various brands through the retail chain “Mobile Plus”.
B. Assembling and distribution of its own products CDMA Mobile Phone, Data Cards, FWP, Tablets through the retail chain “Mobile Plus” and Open market sales.
C. Distribution of Mobile Phone accessories under the brand “Platinum” and “Mi Pow” through the retail chain “Mobile Plus”.
D. Distribution of own CDMA Mobile handsets and CDMA EVDO Data Cards in Mumbai Circle for TTML. Ø MOBILE HANDSETS & DATA CARDS:
Our company has entered the mobile handset market in India in the year 2007. The brand is registered with most CDMA operators like Tata Indicom and MTS and is visible in their outlets across India. We Sell data cards & smart phones under brand "Xccess”. The operators generally work out a bundled offer along with their marketing schemes wherein the mobile handsets are provided by Prabhat to their distributors and retailers. Recently V3 has debuted in GSM technology and is in the process of starting a line-up of the most tech-savvy and good looking mobile phones with both basic features and Android base.
Manufacturing
While we design our products internally, we contract with reliable suppliers based in China and Hongkong to manufacture our products. The technical specifications we provide include a detailed description of the components to ensure quality, overall technical compatibility, consistency with design and pricing of the handset. Our Operations broadly involve the following:
• Product Development. Our Company focuses on the development of innovative products through a combination of strong in-house technology and design capabilities and comprehensive knowledge about our target market segments and consumer preferences based on consumer feedback as well as feedback from distribution channels.
• Marketing and branding. Our Company seeks to establish Prabhat as India's leading and most innovative mobile handset distributor.
• Selling and Distribution. Our Company outsources distribution through arrangements that enable us to quickly recognize revenue;
Product Development Cycle
The following diagram depicts our product development process:
Idea Generation Product Screening Product Conceptualizatio n Concept Testing Business & Financial Analysis Product
Development Test Marketing
Commercial or Mass Launch
Prabhat Telecoms (India) Limited-Draft Prospectus
76 Idea Generation
Idea generation is a continues process for search and development of a New Product, Improvement in products, Product modifications through in house and external team efforts Idea Generations sources
In-house- R&D Team, Sales Team, Marketing Team, After sales support Team External – Customers, Competitors, Distributors, external agency for survey.
Innovations- innovations are one of the most important factors in development of products, innovation can come from In house RND team or a external RND team which can be customized to a product.
Product Screening
Product screening is a important part where the ideas, requirements and analysis are screened and further poor ideas and concepts are dropped out, Ideas are compared to the nearest available competitor products and evaluated on different unique selling points which can help the product to make it foot prints in the markets. Product conceptualization
Once a idea is captured, product conceptualization is a important process where all the Physical and other requirements of the product are captured and visualised, all parameters to the product are considered and also measured its effects if the same are removed or modified.
Other major factor to the product conceptualization is analysing Product Positioning, Price, Target customers, Marketing strategy and Profit estimate.
Concept Testing
Concept testing is the most cost-effective process where the concept can be explained in written or in oral to a group of customers, distributors, retailers and other potential part of the channel and a feedback of them can be recorded, it helps to measure the enthusiasm customer and market enthusiasm and also build a marketing plan for the product
Business and financial Analysis
Once the concept of the product is ready a the most important part followed by Business and Financial Analysis, we have to identify Demand Projections, Cost Projections, Competitions, Investments and Profitability
Product Development
Product development is a process which converts a mere idea to final product; it not only covers the construction of physical product, but also involves important steps as Physical Product development, Testing of products, Usage testing, Branding and Packaging Design.
Test Marketing
Test Marketing Involves to the placement of stock in limited and controlled Geography, and also may be with selected outlets, this can help to monitor the performance of the product and the gather the initial feedback, important fine tunings and improvement in the product if required can be recorded and quickly implemented in the product before mass Launch.
Commercial or Mass Launch
After the Test Market launched is successfully completed, Product is ready to be introduced in Target Markets all full fledge marketing plan needs to be executed to build the awareness of the product and to reach the desired sales and profit targets.
Ø MOBILE PLUS
We have also started its own e-commerce portal to promote its own branded product along with other leading
Prabhat Telecoms (India) Limited-Draft Prospectus
77 OUR PRODUCTS:
Some of our major products are tabled as below:
Mobile handsets, Fixed Wireless phones, Tablets and Data Cards:
Sr. No. Model Name Model Number Brand Description
1. V100 V100 V3 Data Product
2. V26 V26 V3 CDMA Music Phone
3. V27 V27 V3 CDMA Music Phone
4. GEM CM100 V3 CDMA Low end Phone
5. QUICK V3QC V3 CDMA Full Multimedia Phone
6. SLEEK I1615 V3 CDMA Music Phone
7. XING CM225 V3 CDMA Multimedia Phone
8. BOSS V3 CDMA QWERTY Phone
9. ASTRO GM888 V3 GSM Dual Sim
10. PEARL CE340 V3 CDMA/EVDO Phone
11. STAR V3 GSM Dual Sim
12. BIZZ GQ225 V3 GSM Dual sim
13. GEM+ CM300 V3 CDMA Phone
14. X500 X500 Xccess Data Product
15. GEM I CM301 V3 CDMA Phone
16. MI FI ROUTER X-900 Xccess Data Product
17. EVDO TABLET Xccess Tablet
18. FWP FWP002 Xccess FWT
19. QUICKPAD 7 7Q Xccess Tablet
Mobile Accessories:
Sr. No. Particulars Brand
1. Scratch guard Platinum
2. High end phone and
tablet cover
Mi-pow
3. Power Bank Platinum
MILESTONES & ACHIEVEMENTS:
• 2003 National Award from Tata Indicom
• 2008 Power Partner Award from Tata Sky
• 2009 Top Distributor award from Micromax
Prabhat Telecoms (India) Limited-Draft Prospectus
78 COLLABORATIONS
• Exclusive importer and distributor for mobile security -Defenx products (Swiss based Co.) in India.
• Exclusive Agency agreement with Shenzhen ZNV Tecnology Co. Ltd for import and distribution of security
and surveillance equipments in India OTHER UTILITIES
Our Company’s assembly unit is located at Bhiwandi (Maharashtra), where the utilities like power and manpower are easily available. The registered office is located at 2, Geetanjali Apartments, Manchhu Bhai Road,Near Manali Hotel, Near Subway, Malad (East), Mumbai-400 097. The corporate office is located at 402, 4th Floor, Western Edge -1, Western Express Highway, Borivali (East), Mumbai 400 066.
Manpower
The details of existing manpower employed are as under:
Sr. No. Category No. of
employees
1. Administration 12
2 Accounts & Finance 8
3. Company operated store 2 4. Informaton Technology 6 5. Sales 32 TOTAL 60
Prabhat Telecoms (India) Limited-Draft Prospectus
79 Major Customers
Our customer base are mainly telecom operators for bundled handsets and our distributors. . The following are our major customers:
Ø Tata Teleservices Limited
Ø Tata Teleservices (Maharashtra) Limited
Ø Drive India Enterprise solutions Limited
Ø The Mobile Store Limited
Ø TVC sky shop Limited
Ø Shyam Sistema Limited (MTS)
Ø Ominitech Info solution Limited Ø Apex corporate services
Ø Armaani Enterprises
Competition
The mobile handset markets in which we operate are highly competitive particularly in India as many new competitors have entered the market in the last several years. As the market continues to move towards multimedia devices, this trend may result in even more competition.
The mobile handset market participants compete with each other on the basis of their product, services and solutions portfolio, user experience, design, price, operational and manufacturing efficiency and technical, performance, distribution strategy, quality, customer support, brand and marketing. The critical factors that determine the success of a product or service vary by geographical market and product and services segment. In general, mobile device markets are becoming more segmented and diversified, and we face competition from different mobile device manufacturers in different user segments, price points and geographic markets.
Due to the intensity, complexity and diversity of the competition overall, the competitive landscape in our industry or in specific industry segments can change very rapidly. As the parameters of competition are less firmly established than in other industries where the competitive landscape does not change greatly from year to year, it is difficult to predict how the competitive landscape of the mobile device industry will develop in the future. General competitive factors in the market include: overall quality of user experience, design, time-to-market, brand awareness, technology offered, price, product features, performance, quality, delivery and warranty, the quality and availability of after sales service and relationships with our distributors.
Marketing & Distribution: Marketing and Branding
Our Company intends to seize upon opportunities presented by digital convergence by allocating significant resources to establish Prabhat as one of the India's leading handset company. Our branding strategy focuses on the innovative functionalities of our products to project reputation for innovation. Our marketing plan comprises advertising in print media, pamphlets and through sales promotions.
Our marketing and branding team responsible for our outbound marketing activities, with the aim of developing and enhancing our brands and increasing traffic to our sales points.
Some of our marketing activities envisaged as below:
Public relations – Our Company focuses on opportunities to raise our brand awareness through non-paid publicity activities such as articles, features and reviews.
Prabhat Telecoms (India) Limited-Draft Prospectus
80
Advertising – Our Company plans to appoint suitable external agency for print as well as electronic media based on a marketing plan for each of our products.
Training and in-shop demonstrators – Our Company focuses on providing in-shop demonstration training to our sales coordinators and distributors.
External displays - Our team creates posters, banners and other point of sale material for promotional activities. Selling and Distribution
Our Company has pan India presence covering majority of the states and union territories. Our state and regional distributors sell our products, in unique territories assigned by us, to local distributors, who in turn distribute our products to several retail outlets that sell to consumers. We have also partnered with a national distributor that targets organized retail outlets and helps us build our brand name and sales through such channels. Our company focuses on building long term relationships with our distributors and have grown the depth and breadth of our distribution network rapidly, in both Tier 2 and Tier 3 cities as well as in India's largest cities. Our policy is to offer attractive margins to our channel partners to incentivize and motivate them with respect to the distribution of our products versus the products of our competitors.
As on 31st March, 2014 our company has entered into total agreements with 30 distributors. The state wise break-
up of our state and regional distributors is given below:
Sr. No State/Union Territories Number of Distributors
1 Himachal Pradesh 1 2 Ambala 1 3 Haryana 2 4 Uttar Pradesh 3 5 Maharashtra 15 6 Rajasthan 3 7 Assam 2 8 New Delhi 3
EXPORT POSSIBILITY AND OBLIGATION