Lava International Ltd, an Indian multinational company, gets on track after the launch of one of the most successful smartphone series, Agni 5G. It is also considered the comeback of India's mobile handset giant in the industry. According to the Economic Times report, Lava International Ltd plans to expand its 5G smartphone manufacturing and target the smart accessories market in the next few years.
If we see it from the investing perspective, Lava International Ltd also has various plans before its IPO, one of which is to increase profitability. Undoubtedly, the high demand and people's preference for the "Made In India" smartphones benefits the company and continues to do so. If you are an investor interested in Lava share price, which depends on its business performance and profit, this blog will give you an idea of Lava's future business plans.
Lava's Approach To Compete With Chinese Smartphone Brands
Lava International witnessed a tragic business downfall after the entry of Chinese smartphone brands into the Indian market. With the clear strategy of providing more features in an affordable pricing range, companies like Vivo, Oppo, Realme, and Xiaomi almost eliminated Lava from the Indian smartphone market. As a result, Lava International share price also performed low as expected.
However, Lava International got a boost due to government schemes like "Made In India", allowing it to launch its premium smartphone series, Agni 5G. In an interview with Zee Business, Sunil Raina, Business Head and President of Lava International Ltd, said, "Lava is now the biggest threat to the Chinese smartphone brands."
In the past few years, the demand for Lava smartphones increased as the company now focuses on providing premium features at an affordable price range. It also reflects on the company's profit statement. From the future business perspective, Lava is more focused on producing the 5G smartphone and investing in its R&D and manufacturing for the 6G technology, which will revolutionise the smartphone industry.
The company's future plans for increasing the profits ahead of its IPO will also affect Lava share price. Knowing what Lava has in its bag for future profitability growth is crucial for investors.
Possible Plans Of Lava International To Generate Profits
The Care Edge Ratings report indicated that the ratings assigned to Lava International Ltd for improved operational efficiency improved in FY22. It clearly shows the operations of Lava are streamlined, which benefits the company in getting financial assistance from the top banks and financial institutions.
The company is performing decently in terms of profitability, as it still relies on third-party suppliers for its various needs. Here are the possible business plans of Lava International to generate high profits:
Ramp Up Production
Lava International's primary plan to increase profits is to ramp up its production to fulfil the growing demand for its latest smartphones. The company's business head has already clarified that its latest Agni 2 series has consistently been out of stock for quite some time.
For this, Lava has plans to increase its production units in different states of India while taking advantage of the Indian Government's PLI scheme. Apart from this, the company will also focus on controlling the business expenses.
Increase Its Distribution Network
Currently, Lava International has a limited distribution network In India. The majority of sales come from third-party e-commerce platforms like Amazon and Flipkart. In the next few years, the company aims to increase its retail distribution network and offline sales.
It will allow the company to target those customers who prefer offline purchasing. From the financial perspective, it may result in Lava's positive profits. Consistent profits generated via seamless retail distribution are also likely to affect the Lava share price positively.
Less Dependence On Suppliers
Lava International currently depends on third-party suppliers for most of its raw materials. The future business plans of Lava will also limit its dependence on suppliers and focus on creating smartphone chips and other components by itself.
With this move, the company can control the cost of purchasing the raw materials and work towards increasing profits. Apart from this, it is also vital for the company to keep its profit high consistently, which will reflect on Lava International share price.
Will It Be Profitable For Investors To Invest In Lava International Ltd?
From the investment point of view, Lava International Ltd is growing at a positive rate. It reflects in Lava share price and other financial metrics. At the time of buying unlisted shares of Lava, you should consider its current performance, profit/loss report, past shares performance, and other factors.
Since the company has various plans to increase its profits before an IPO, it might be profitable for you to invest in Lava International pre-IPO stocks. You can use unlisted shares broking platforms like Stockify for expert advice and guidance. There, you will get access to Lava share price, financial reports, and other valuable data of the company that will help you make an informed investment decision.
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