Lava aims to invest more than ₹500 crores in research and development (R&D) and marketing over the next two years, with a strategic focus on achieving 100% year-on-year growth. The newly appointed Managing Director, Sunil Raina, expressed priorities centered on delivering enhanced value to consumers, achieving robust growth for the next 3–4 years, and making strategic investments in key areas.
The company, which experienced a threefold increase in revenue and 2.5 times growth in volumes since relaunching its smartphone brand in 2020, is targeting the budget smartphone segment with a commitment to ‘5G-fy’ its offerings.
Lava’s Expenditure on R&D
Raina highlighted the intent to bolster R&D capabilities and marketing resources as the company scales up, emphasising the importance of brand and product backed by exceptional service and distribution. Lava, after facing competition from rivals in recent years is ready to reclaim its market share by making strategic investments and staying competitive. The company, which reached its peak market share of 8% in the smartphone segment back in 2014, plans to capitalise on 5G smartphones as a driver for growth.
With a 28% stake in the feature phone market, Lava is strategically focusing on 5G smartphones with a user interface derived from ads and third-party apps. Raina highlighted the company’s transition to 5G technology, introducing the ₹10,000 5G smartphone and achieving sales of over three lakh units. Lava stands out in the market by prioritising interfaces and regular software updates, ensuring consumers receive at least two years of Android version updates and three years of security updates.
Raina acknowledged that consumer-centric choices like no bloatware or ads and consistent software updates may result in profit margins. However, he expressed a willingness to prioritise consumer satisfaction over profits, as he believes that consumers are becoming more discerning and knowledgeable about their preferences. Raina is confident that this customer-focused approach will give Lava an edge over competitors and contribute to changes within the industry.
