India is not known for its tech brands. It certainly isn’t known for its mobile phone brands. So the recent decision of telecoms conglomerate Spice Group to set up shop in Singapore with a view to launching its handset range globally raised more than a few eyebrows. Could a brand little-known outside India really take on the might of Nokia and Motorola?
Behind that push is Dr Bhupendra Kumar Modi, serial entrepreneur, chairman of Spice Group and a scion of one of India’s richest families. In person he is businesslike - brusque, even - but clearly enthusiastic about the opportunity to build a global brand.
The 59-year-old certainly portrays himself as a mould-breaker. For a start there’s his tendency to refer to himself as BKM (“I don’t believe in using my family’s name”). Then there’s his expensive taste in real estate. Modi has set tongues wagging by snapping up a US$11 million penthouse in Singapore’s Marina Bay. He is moving from Beverley Hills, after all.
“I have always done things differently,” he says. “I left India at a young age and studied in the US. That is why I think differently.”
Not for Modi were the steel, sugar and chemicals interests he inherited from his family. Instead he has been investing in the more glamorous technology and entertainment sector. Former initiatives include bringing Xerox and Alcatel to India through joint ventures.
“In all the ventures I have undertaken the key ingredients are fun and innovation. I come from a family that was into traditional businesses. But I always wanted to do different things. What I enjoy is new, exciting businesses.”
Can he really pull it off? Perhaps, according to Strategy Analytics, which argues that Indian handset brands are set to emerge into the global spotlight in 2009, as the industry builds on a large, profitable base in the sub-continent.
Set up in October 2004, the company sells handsets across the low, medium and high-end segments, and expects to sell six million units this year. It also owns Hotspot, an Indian mobile phone retailer.
Spice’s primary focus outside its home market will be devices and value-added-services. The company will start by launching 12 of its mobile phones ranging between $20 and $400 in Asia’s emerging markets. Modi characterises this region as “I to I” (or Indonesia to Israel).
He argues that mobile penetration in these markets is still low at 32 per cent and there is a huge untapped market for value-for-money devices that are high on features and low in price.
Modi plays down the challenge to existing mobile giants such as Nokia. “We are not in the same league as them so they need not be scared of us. Our strength lies in the fact that we are a smaller group and innovate and adapt faster than bigger companies. Our competitors should not take us lightly”
Spice is certainly not short of cash. Modi’s group is worth $1.5 billion. Recently, he sold his entire stake in wireless services company Spice Communications to Aditya Birla Group for $574 million, of which $200 million is going into its fledgling international operations.
In Asia, Spice will also try to find a space as a value-added services enabler, once again following its Indian template. Its affiliate Cellebrum Technologies, which provides platforms for services such as gaming and music to operators in India and worldwide, has been hugely successful. Spice’s experience working with international operators such as Telecom Malaysia will come in handy as it expands - though Modi says the brand is still in negotiations with potential regional partners.
Kamlesh Kalwar, telecoms analyst from Frost & Sullivan, thinks that even though its phones might stand a chance in the low-end segment in emerging economies, “the biggest challenge for Spice would be to distinguish itself from other economical phone brands.”
Yet Modi insists he has what it takes to cut through at this level. “I have worked with global brands and have experience of brand management.”
To this end Modi will be on the lookout for an agency to take care of Spice’s creative and media in the next few months.
And with the global economy looking increasingly shaky, the time could be right for a strong mobile brand built around value for money. “As a brand, what we stand for is innovation,” Modi concludes. “And when there is a slowdown there is innovation”.
BKM’s CV
2006 Founder, Omnia
2004 Founder, Spice Mobile
2003 Founder, Hotspot
2001 Founder, Cellebrum
1995 Founder, Modi-Telstra; founder, Spice Communications
1986 Founder, Modi-Olivetti
1984 Founder, Modi-Xerox
Behind that push is Dr Bhupendra Kumar Modi, serial entrepreneur, chairman of Spice Group and a scion of one of India’s richest families. In person he is businesslike - brusque, even - but clearly enthusiastic about the opportunity to build a global brand.
The 59-year-old certainly portrays himself as a mould-breaker. For a start there’s his tendency to refer to himself as BKM (“I don’t believe in using my family’s name”). Then there’s his expensive taste in real estate. Modi has set tongues wagging by snapping up a US$11 million penthouse in Singapore’s Marina Bay. He is moving from Beverley Hills, after all.
“I have always done things differently,” he says. “I left India at a young age and studied in the US. That is why I think differently.”
Not for Modi were the steel, sugar and chemicals interests he inherited from his family. Instead he has been investing in the more glamorous technology and entertainment sector. Former initiatives include bringing Xerox and Alcatel to India through joint ventures.
“In all the ventures I have undertaken the key ingredients are fun and innovation. I come from a family that was into traditional businesses. But I always wanted to do different things. What I enjoy is new, exciting businesses.”
Can he really pull it off? Perhaps, according to Strategy Analytics, which argues that Indian handset brands are set to emerge into the global spotlight in 2009, as the industry builds on a large, profitable base in the sub-continent.
Set up in October 2004, the company sells handsets across the low, medium and high-end segments, and expects to sell six million units this year. It also owns Hotspot, an Indian mobile phone retailer.
Spice’s primary focus outside its home market will be devices and value-added-services. The company will start by launching 12 of its mobile phones ranging between $20 and $400 in Asia’s emerging markets. Modi characterises this region as “I to I” (or Indonesia to Israel).
He argues that mobile penetration in these markets is still low at 32 per cent and there is a huge untapped market for value-for-money devices that are high on features and low in price.
Modi plays down the challenge to existing mobile giants such as Nokia. “We are not in the same league as them so they need not be scared of us. Our strength lies in the fact that we are a smaller group and innovate and adapt faster than bigger companies. Our competitors should not take us lightly”
Spice is certainly not short of cash. Modi’s group is worth $1.5 billion. Recently, he sold his entire stake in wireless services company Spice Communications to Aditya Birla Group for $574 million, of which $200 million is going into its fledgling international operations.
In Asia, Spice will also try to find a space as a value-added services enabler, once again following its Indian template. Its affiliate Cellebrum Technologies, which provides platforms for services such as gaming and music to operators in India and worldwide, has been hugely successful. Spice’s experience working with international operators such as Telecom Malaysia will come in handy as it expands - though Modi says the brand is still in negotiations with potential regional partners.
Kamlesh Kalwar, telecoms analyst from Frost & Sullivan, thinks that even though its phones might stand a chance in the low-end segment in emerging economies, “the biggest challenge for Spice would be to distinguish itself from other economical phone brands.”
Yet Modi insists he has what it takes to cut through at this level. “I have worked with global brands and have experience of brand management.”
To this end Modi will be on the lookout for an agency to take care of Spice’s creative and media in the next few months.
And with the global economy looking increasingly shaky, the time could be right for a strong mobile brand built around value for money. “As a brand, what we stand for is innovation,” Modi concludes. “And when there is a slowdown there is innovation”.
BKM’s CV
2006 Founder, Omnia
2004 Founder, Spice Mobile
2003 Founder, Hotspot
2001 Founder, Cellebrum
1995 Founder, Modi-Telstra; founder, Spice Communications
1986 Founder, Modi-Olivetti
1984 Founder, Modi-Xerox
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