Indian cell phone makers taking the battle to TV market

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In October 2015, Intex Applied sciences (India) Ltd, one other native cell handset maker, bought 45,000 LED TVs. That’s 4.5% of the market.

Two years in the past, Micromax didn’t have a tv enterprise. Now, TV units account for about 7-8% of its income.

In notching up such gross sales, each Micromax and Intex have adopted a method undertaken by established tv makers, such because the Korean corporations Samsung Electronics Co. Ltd and LG Electronics Inc. and Japanese firms Sony Corp. and Panasonic Corp. in India. However they’ve reversed the technique.

The Korean and Japanese giants had been established TV makers, which tapped the cell handset market. Micromax and Intex have carried out the alternative—they moved from cell handsets to TV.

In India, Samsung Electronics makes extra money by promoting cellphones than the rest.

Within the fiscal 12 months ended March 2014, about 70% of its income in India got here from mobiles. Panasonic sees cellphones contributing about 35% of income within the subsequent two years, in comparison with round 10% in 2014-15.

For Sony, cell accounts for about 40% of income.

“It’s a logical transfer by Indian handset makers as it’s an extension of the display enterprise. Additionally, they’ve, with cell handsets, already constructed their model presence, which is robust sufficient to push new merchandise. They’ve, previously few months, already disrupted the market—primarily the entry-level. Going ahead, they’ll eat extra into the market shares of the established TV makers,” stated Rajat Wahi, associate and head (client markets) at consulting agency KPMG in India.

Nevertheless, Wahi stated TV will not be a rising market and corporations like Samsung, Sony and Panasonic will ultimately transfer out of the market or give attention to expertise.

“This may be a possibility for the Indian firms,” he stated. However additionally they must battle in opposition to different corporations, like China’s Haier Electronics Group Co. Ltd and Japanese firms resembling Toshiba Corp., that are pushing TVs within the entry-to-mid section.

Trade physique Client Electronics & Home equipment Producers’ Affiliation (CEAMA) estimates 14.5 million tv units might be bought in India in 2015, of which 12 million could be LCDs and LEDs.

The variety of TV units bought in 2011 was 15.5 million.

Already, Micromax ranks among the many prime 5 TV sellers in India, with an estimated 10% market share. “Over the following one 12 months, we goal to have a 12% share,” stated Sunil Dutt Sharma, enterprise head, client sturdy and IT, Micromax Informatics. “About two years again, the LED TV enterprise was contributing about 2% to our prime line. Now, it contributes about 7%-8% of our general enterprise, and going ahead, our goal is to extend it to 10%-12% by the tip of this fiscal 12 months.”

Intex Applied sciences is concentrating on a gross sales determine of 600,000 LED TV units in 2015-16, based on Nidhi Markanday, enterprise head of client durables and IT equipment, Intex Applied sciences.

The agency bought 182,000 items in 2013-14.

“Going additional we additionally plan to enter the Extremely HD section. We’re specializing in strengthening our presence on this vertical throughout the nation,” she stated.

Celkon Impex Pvt. Ltd has come late to the celebration. Earlier this month, it introduced an funding of 250 crore to make tv units in two services at Hyderabad and Tirupati.

A spokesperson at Samsung declined to touch upon the particular concern. Manish Sharma, managing director at Panasonic India and South Asia, didn’t reply to calls and message in search of feedback on the problem.

The technique to faucet the TV market has labored for Micromax, whose gross sales grew by 47% within the fiscal 12 months ended March 2015 to 10,450 crore, based on its filings with Registrar of Corporations (RoC).

Then again, Samsung Electronics noticed its income decline in India—for the primary time in 10 years.

In keeping with its filings with RoC, income stood at 38,868 crore within the 12 months ended March 2015, in comparison with 40,392 crore in 2013-14.

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