Indian companies like Videocon, Usha Lexus and Reliance Communications among others are ready to take on the unbranded Chinese mobiles which flood the Indian markets.

India, is the second largest market for mobile phones next only to China.  There are about 6 million GSM phones sold every month in India and it is expected to double by the year 2012.  Only about 62 million users out of a total of 300 million users of mobile phones are from the rural areas. 

There is an immense growth potential in the rural areas as well as Class B and Class C cities and towns.  Indian Companies have realised this potential and they are all set to take on not only the Chinese mobiles which flood these markets but also the MNCs.

Indian companies are now buying mobile phones in bulk from countries like China, Hong Kong and Taiwan.  They put the stamp of their company and offer it to the subscribers with warranties and after-sales services, which are not provided to the customers when they go in for the unbranded Chinese mobiles.

Videocon, a company to reckon with in the electronics goods market is going to be launching mobile phones around Diwali this year.  The company hopes to use to its advantage its already well-established brand name and brand recognition. 

Rural areas and cities and towns falling into B and C group would be the target market areas.  Indian Companies see immense growth potential in these areas especially for the mid-range phones which fall into the Rs. 1000 to Rs. 8000 range.

Videocon, Usha Lexus and Reliance Communications have already well-established distribution chain in place in these areas. So, they see no reason why they would not be able to give a tough competition to the unbranded Chinese mobiles as well as multi-national mobile companies which also have plans for these areas.

 As companies try to out-do each other to offer better products and better value for money, there is not doubt that the customer would emerge as the King.