First Indian Mobile Handset Brand Launched

Chennai-based Munoth Industries Ltd is launching India's first mobile brand
under the name `VK Munoth'. VK Corporation based in Seoul, South Korea is the contract manufacturer for the company. This is the first time that an
Indian brand is entering the highly competitive mobile handset market with
many big names such as Nokia, Samsung, Sony Ericsson, etc pitching in the battle.

"Presently, we are introducing three models (all GSM handsets)--VG107, CG107
and VG207, in the market. And, there will be new additions at regular intervals to offer a wide range of products to the customers," said Vikas
Munoth, Director, Munoth Industries.

The products are positioned for the hi-end market and the company is looking
at earning one percent-two percent market share in the first two years. VG207, according to the company is the smallest color phone in the world
with 65,000-color display. All the three phones are sturdy, small, lightweight and available only in the clamshell model. VK Munoth mobile
phones would come with features like password protected key pad lock, Dual
blue LCD display, 26 polyphonic ring tones, 38 screen savers, 10 caller groups, etc. Bio Rhythm and Pink Schedule are two rare features of the
handsets. Bio Rhythm keeps track of user's physical, emotional and intellectual rhythm and checks compatibility with his companion on daily
basis. This is done on feeding user's date of birth. Similarly another different feature targeted at women is the Pink Schedule where
women can set their menstrual period and track their biological cycles. The stand by
time/talk time for the slim battery (620 Mhz) is 100/2.5 hours and for the standard battery is 100/3 hours.

Munoth Industries, a 10-year old company, is also the exclusive national
distributor for Siemens Mobile phones and accessories since 2001. After positioning its brand well in the market, the company plans to set up a
manufacturing unit in Chennai within a period of six months. The manufacturing facility would be used to produce handsets for both internal
requirements and also for contract manufacturing for other brands who want to take advantage of the zero percent import
duty on parts provided the phones are manufactured or assembled in India.

According to Munoth, "The current budget is a blow to the grey market with
the government taking off the excise duty on phones. Further, imported things will not be viable in India with the imposition of zero import duty
on components and the state governments being allowed to collect additional
sales tax. In such a scenario all the brands will prefer to manufacture mobile phones in India."

"We plan to reach out to nearly 1,800-2,000 shops across the country through
our 20 regional distributors spread across India. We were the ones to develop Siemens network in India," he said. According to Munoth, the company
would continue being the national distributors of Siemens. Rather VK Munoth
and Siemens would operate as two separate divisions and compete with each other like cats and dogs.

Currently, the Munoth handsets would be available only on the GSM technology, though at a later stage the company would
go in for CDMA handsets. "We are not wedded to any particular technology. In my personal
opinion CDMA and GSM will integrate maybe after six months-seven months," he
added.

VG107 and CG107 would be available at Rs 12,900 in almost all states except
for Kerala (Rs 13,600) and Mumbai (Rs 13,300). VG207 is priced at Rs 18,500
in almost all states.

{CNS)