Holding the Fort, Conquering New Frontiers: Inside Lava's Strategic Reboot

Over the past 16 years, Lava has remained committed to delivering quality, innovation, and value to its consumers. Our focus has been on democratizing technology by delivering greater value and superior experiences. Whether it’s our flagship Agni series and Blaze series, we have consistently introduced segment-first innovations. Agni 3, Blaze Duo, Blaze Curve, and Blaze X marked our entry into higher segments, reinforcing our focus on delivering value across all categories.  Each of these devices pushed the envelope. Agni 3 is the only Dual AMOLED device in its segment. Blaze X was the first curved AMOLED under 15K.

As we continue achieving new milestones, we are expanding into premium segments while staying true to our core philosophy. For us, pricing is not just about cost—it’s about the value we bring to consumers, ensuring they receive exactly what they seek. With a renewed vision of “Lava Reimagined,” a fresh strategy, and an agile team leading the way, we are confident that Lava will continue to strengthen its connection with consumers, especially the youth, and witness even greater trust and love in the years ahead.

The Indian wearables market has experienced a slowdown, largely due to concerns around quality and user experience. Consumers today are more informed and discerning than ever. This shift demands a more serious approach from brands, one that prioritizes accuracy, durability, experience, and overall quality. The era of casual, commoditized wearables is fading; success in this space now hinges on delivering products that truly enhance the user’s experience, rather than just offering affordability.

With our sub-brand Pro, we are committed to delivering everything that other brands have failed to, addressing the trust deficit in the market. We aim to set new benchmarks in quality, experience, and accuracy—filling the gap where others have fallen short. We believe the market is ready for a brand that prioritizes consumer trust and delivers on its promises.

The Indian wearables market is evolving, and as consumers become more discerning, the focus has shifted from just affordability to quality, accuracy, experience, and durability. In both the audio and smartwatch categories, we have strategically expanded our portfolio across segments. Our focus remains on delivering quality and innovation at the most competitive price. Lava is a consumer-first brand, where real consumer feedback and challenges shape our product conceptualization and design. We are one of the few brands who have in-house App design capability. With our design labs and testing centers, we maintain complete control over quality, ensuring our products meet the highest standards. Notably, 70% of our components are locally sourced, one of the highest in industry. Our goal is to restore consumer trust by offering superior products that stand out through innovation and excellence. We intend to become a leader in the category.

While the PLI scheme has been instrumental in scaling up India’s smartphone manufacturing, it’s important to acknowledge that various government initiatives support the industry. For Lava, the challenge with PLI was that we were already operating at a higher sales threshold compared to emerging brands, making our targets more ambitious. Despite this, we remain committed to achieving them. Our strategy is focused on increasing market share through innovation, uncompromising quality, and a strong operational framework. By leveraging our expertise in design, manufacturing, and localization, we are confident in aligning with PLI goals and driving sustained growth.

Innovation is transcendental. Whether in smartphones or feature phones, our journey and vision remain the same. Last year, we saw an overwhelming response to Hero Shakti and A1 Josh Bol. While it is true that the market is declining, however it is still very big. Even in feature phones, we did a lot of innovations in products like A1 Clear, A3 Torch. Further, overall product experience is of utmost significance for this category wherein we have introduced initiatives like over the counter replacement.

Lava continues to hold a strong position in the feature phone market as one of the leading brands in this category. This is driven by our commitment to affordability, reliability, and an extensive distribution network that keeps our devices accessible, beyond the metros and prominent tier I/II cities. While the market is contracting, steady demand persists among first-time users, people seeking a secondary device, and professionals needing durable, long-battery devices. We remain dedicated to serving this segment while preparing for the evolving market landscape.

The deluge in consolidated figures is owing to international businesses. The India business has grown. We are on an upward growth trajectory, with FY24 surpassing FY23 in standalone revenue and volume. We are consistently growing in volume and market footprint. Our market share in sub 8k segment has grown multifold last year. We have got the momentum and are optimistic about the future ahead.

We are in the process of raising funds to support our growth initiatives, as securing the right capital is essential to driving our long-term strategy. We remain committed to strengthening our market position and expanding our portfolio.  IPO is an alternate and will be considered depending on multiple factors. Our focus remains on building a stronger foundation through innovation, operational excellence, and sustainable business growth.

Lava’s resilience, passion for innovation, and commitment to excellence have been the driving force behind our journey. We never wavered in the face of global competition, or the challenges posed by the pandemic, choosing instead to move forward with optimism and determination. While the brand has seen more downs than ups, we have remained in the hearts of consumers, and with Lava Reimagined, we are confident in reigniting the trust, passion, and momentum we once had. Our strength lies in building core capabilities and maintaining end-to-end control over our value chain, unlike competitors who largely focused on trading, we invested in in-house design and manufacturing expertise. This strategic approach has allowed us to develop products tailored to Indian consumers’ needs while ensuring top-notch quality, a clean user experience free from bloatware, and a strong after-sales service network. These differentiators have helped us sustain our position in a market dominated by foreign brands, and we remain committed to reinforcing our presence as India’s leading mobile phone manufacturer.