Financial Daily from THE HINDU group of publications
Monday, Sep 09, 2002

Port Info

Group Sites

Corporate - Announcements

Samtel to exit monitor business

Richa Mishra
Neha Kaushik

NEW DELHI, Sept. 8

TO cope with the ever growing demand for advanced colour picture tubes (CPT), the Rs 1,100-crore Samtel Group, is all set to focus on its core areas and exit from other businesses.

A dominant player in the colour picture tubes market, the group is proposing to exit out of its monitor business. At present, the monitor business is a part of Samtel India Ltd.

Recently, as part of its consolidation process, Samtel Color Ltd, the flagship company of the group, had taken over the deflection yoke (DY) business of Samtel India as a going concern. ``The intention is to focus on core sectors. Colour picture tubes (CPT) will continue to remain our main business,'' Mr Satish K. Kaura, Chairman and Managing Director, Samtel Color Ltd, said.

When asked whether Samtel India would consider exiting from the shrinking black and white segment, Mr Kaura agreed that the segment was constantly declining. ``Though we don't see a long-term future in this business, there are no immediate plans to exit it. However, we keep doing a constant evaluation of our businesses,'' Mr Kaura told Business Line.

Samtel now proposes to focus on higher value-added products, namely super flat tubes, colour display tubes (CDT), and higher value tubes (29 inches and above).

The company has also set a new plant in Ghaziabad to produce super flat picture tubes and higher value tubes at an investment of Rs 350 crore. The tubes are being evaluated by some of the major players in the industry such as Philips, Samsung, LG.

Commenting on the role of research and development in the company, he said, that ``all the products have been developed indigenously, using our own in-house facilities.''

No wonder the company has applied for many patents and already has around 22 patents in the group.

For continued upgradation of its technology the company has also tied up with major institute's and labs in India and abroad.

``The existing capacity of the company is 5.1 million, which will be gradually increased,'' he said.

To make a permanent presence in the international market Samtel Color is also targeting to generate a higher proportion of its turnover from exports.

``The company has taken a view to build deeper relationships with large consumer electronics manufacturers,'' he said.

After recently tying up with Vestel in Turkey, the company is now negotiating with two other international players.

Send this article to Friends by E-Mail

Stories in this Section
Way to Edge ahead is to stay slim for Titan

Samtel to exit monitor business
NGRI scientist chosen for mineral award
Audit firm qualifies Apollo Tyres accounts
Avon Organics plans debt recast
`Tata Chem to retain equity investments in group cos'
Dunlop India to resume works at Chennai unit
Toyota plans to sell 36,000 Qualis next year
High power cost forcing cos to shut down in Karnataka

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line