Freedom 251 to make a decent Rs31 profit on each phone sold

Selling at an unexpectedly low price of Rs251 apiece, India's cheapest smartphone Freedom 251 will still be making a handsome profit of Rs31 on each unit sold, says a report.

The smartphone, although no comparison to Apple's iPhone or a Samsung gadget, has taken the world by storm and both buyers and the industry are excited on the phone's business model.

But, the maker of this phone Mohit Kumar Goel, an Amity University graduate, says Ringing Bells can not only afford to sell a 3G smartphone at just Rs251, but can also make a profit.

Speaking to The Times of India, Goel said that he intended to do a genuine business, just like any other startup, and that he has a business plan ready, adding that Ringing Bells will be making a ''profit of Rs31 on each handset sold.''

''Why am I being hounded? What wrong have I done? Why am I being called a 'bhagora' (who'll run away with the money)? I intend to do a valid business, just like any other startup, and I have a business plan ready,'' Times quoted Goel as asking.

Also, the company, set up five months ago, is in the midst of controversy with analysts alleging that its maker has merely rebranded a device by its rival, Adcom.

Meanwhile, officials of the ministry of communications and information technology questioned the Noida-based Ringing Bells after the announcement of the Rs251-smartphone created a flutter among the buyers as well cellphone manufacturers.

The officials on Monday grilled  company president  Ashok Chaddha and promoter Mohit Goel to discover the viability of their newly-launched business and how is it possible to offer phones at only Rs251 whereas experts have opined that the phone, given its specifications, should cost nothing less than Rs3,500.

''It will import 50,00,000 units in the first phase, which will be assembled here. Then, they will start manufacturing in India,'' reports quoted a senior official from the ministry as saying

The company said that it would apply for a Bureau of Indian Standards (BIS) certificate at the earliest.

Union minister Ravi Shankar Prasad has ordered department secretary, Aruna Sharma, to look into the scheme and prepare a report. A panel has also been set up to verify the claims of Ringing Bells that a smartphone can be made as cheap as Rs 251.

The income tax and the excise departments are minutely checking the financial structure of Ringing Bells and they apparently received the documents, including from the registrar of companies regarding the matter.