YU founder Rahul Sharma is better known for founding one of the countries’ largest-selling mobile phone companies, Micromax Informatics. But Sharma’s plans for his latest venture differ vastly from that for the fast-growing Micromax, he tells Rhik Kundu in an interview. Excerpts
What prompted you to create YU when another company founded by you, Micromax, is doing so well?
YU is a completely different company from Micromax — the only common thing being that I am a founder for both. YU is also a 100%-owned subsidiary of Micromax. While Micromax is on a smooth curve, I wanted to start a company that listens to its users/customers and gives whatever customisation is sought. The Y in YU comes from you and the U from us. While one can’t carry out a high level of customisation on Android, the same is possible for Cyanogen, which consists of over 10,000 developers from across the world. Services means a platform and not just an application. It also has to solve problems. Yu is just not a phone, but a connected ecosystem.
Will YU consider releasing devices other than phones?
Absolutely. Phone is just one device. What I am thinking of is devices that can connect your shirts and shoes to your phone. For instance, it would be nice to have an ecosystem where devices remind you about the movie you were watching a day before and ask you whether you want to continue watching it. You can expect different connecting devices from us in future.
Several users have faced challenges with some brick-and-mortar stores refusing to provide after-sales service for Micromax phones.
At Micromax, we do understand the challenges. To top it, we are growing at a very fast pace, which makes it even more challening. However, we are expanding our network of service centres, which will grow only bigger in days to come. When it comes to YU, the strategy is completely different. YU, which is completely an online brand, offers after-sales services at doorstep. The after-sales service of YU will locate you by the pincode, come to your home and service your product.
Any plans to list Micromax or YU in future? Are you considering raising capital in the near future?
There are no plans to list or raise capital in the immediate future for either Micromax or YU.
How does Micromax plan to counter competition from Motorola and Xiaomi?
Competition has been there since the time we launched Micromax. When we started making smartphones, people never gave us a chance. Many said Samsung would come after us. However, we have demonstrated in last couple of years what we are capable of. The competition will always be there but it will make Micromax constantly strive to get better and better, day by day.
Would Micromax continue with its strategy to release handsets only in the mid-price segment, or will it someday also roll out devices to cater to the niche segment?
Micromax is currently well-placed in the highest growing segment in the mobile phone market, that is the mid-priced-segment. Micromax wouldn’t like to change its strategy and start assembling devices for the niche segment where established players like Apple are already present. However, at YU, the strategy is to make devices that our users ask us to make. If they ask us to make something crazy, we will make something crazy.
With etailers selling phones at massive discounts, brick-and-mortar stores have raised their concerns with several phone companies. How do you deal with this?
In India, e-commerce is not as evolved as it is in the US or the West. The offline market still contributes over 90% to cellphone sales.
Since e-tailing is still nascent in India, though catching up among urban youngsters, retailers are getting worried. But I think they will settle down soon enough. If you visit the interiors, which house 90% of our population, you will see people are still dependent on brick-and-mortar stores for retail goods.
How different is Cyanogen OS from Android OS?
Cyanogen OS has thousands of extra features that are not available on Android. For instance, if you download facebook on Android, you have to give the application permission to control your camera. With Cyanogen OS you can choose not to do so. You can also control the level of access to your personal information. You can also control your processor, whether to utilise 1.5GHz or 1.2 GHz, and enhance security for individual apps.
