Financial Daily from THE HINDU group of publications
Saturday, Oct 30, 2004
Financial Daily from THE HINDU group of publications Saturday, Oct 30, 2004 |
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Corporate
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Diversification Zenith Finesse enters retail segment — In tie-up with Chinese co to sell audio-video equipment Mohan Padmanabhan
Kolkata , Oct. 29 ZENITH Finesse (India) Pvt Ltd, which made waves some two years ago by supplying to top Indian corporates China-made high quality corporate gifts in a "value for money" proposition, has now entered the retail segment in audio-visual electronics through a 100 per cent outsourcing arrangement with Gold Yip of China. Zenith has recently entered into a technical tie-up with the Rs 500-crore Gold Yip, major domestic player in audio-visual electronics items such as VCD/DVD/Discman and cassette recorders. Zenith is also increasing its presence in import of China-made corporate gift items exclusively for companies such as HLL, Cadburys, and Britannia. Under the new tie-up, Gold Yip is now directly supplying their products to Zenith Finesse under the Indian company's specific requirements and direct supervision. The company has already rolled out its Finesse brand VCD/DVDs and Discman products in eastern region and Kerala through appointment of distributors. Talking to Business Line here on the new venture, Mr Prithimoy Chakraborty, Director of the company, said under the new business model, the Finesse brand 5-in-one VCD with Dolby digital audio system was being promoted at an affordable price to the customer in the mid-market segment. He said talks are on with an exclusive retail chain in Chennai for appropriately positioning the products for high visibility. The DVD/VCD products are priced between Rs 3,000 and Rs 6,000, with the feature-packed Finesse Discman being offered at an MRP of Rs 2,500. The Finesse-brand Gold Yip cassette recorders are being sold at Rs 170, against the grey market price of Rs 400. Mr Chakraborty said Zenith was looking to touch a turnover of Rs 100 crore by March 2006, largely helped by the new business. A team from Gold Yip is expected to arrive in the city next month for official launch of the new products, and also for discussions with the Indian company on the manufacturing set-up. Mr Ashok V.Kothari, Director in charge of financial operations, confirmed that if finalised, Bengal would be the first choice for such a facility. Asked how the company planned to take on the big players already present in the Indian market, Mr Chakraborty said while price would be a major attraction, the key would be the after-sales service backup, which the company proposed to provide in a big way. He said China-made air-conditioners and microwave sets may form the next list of items under the Finesse brand.
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