The Hindu Business Line : Philips India looks to double biz in 3 years

BUOYED by the fast growth in the colour television (CTV), DVD and home theatre segments in the last four quarters, compared to the average market growth, the consumer electronics division of Philips India Ltd has set its eyes on the top-four slot of the domestic consumer electronics industry during this Diwali season. It aims to grow to the top-three slot in a couple of years.

The Philips India Consumer Electronics Business Head, Mr Suresh Sukumaran, disclosed this to mediapersons here on Saturday on the eve of announcing festive offers. He said the company was confident of achieving the sales target of Rs 400 crore this Diwali season compared to around Rs 300 crore achieved in the corresponding festive period last year.

The company has earmarked an advertisement budget of over Rs 20 crore for the Diwali season, when the prices of the entire product portfolio will be brought down by an average of 20 per cent.

"We have firmed up most aggressive prices for our entire product range for the Diwali season, which nobody in the industry is offering today. We are also launching some new products for the first time during the festive season," he said.

Through aggressive marketing and new product offerings at affordable price ranges, the company plans to reach out to all the segments of the consumer electronics market.

Philips India expects to touch Rs 1,000 crore in consumer electronics business during the current fiscal against over Rs 700 crore last fiscal. According to Mr Sukumaran, the company aims to double its business from consumer electronics to Rs 2,000 crore in three years.

Stating that the company currently enjoys a market share of 6.7 per cent in the CTV segment, he said the idea was to improve the share to over eight per cent by the current fiscal.

The market is expected to grow at 8 per cent to around 75 lakh units this year compared to around 71 lakh units last year. The faster growth in the CTV segment has been coming from real flats and large screens, Mr Sukumaran said.

On the key product ranges expected to significantly contribute to the company's plans to double business volumes, he said DVDs were expected to contribute around Rs 200 crore this year, while home theatres would start generating at least Rs 150 crore per annum from next year.

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