The Hindu Business Line : Samtel to focus on premium TV

IN keeping with changing market trends in the colour televisions category, Samtel Color Ltd, one of the largest integrated manufacturers of colour picture tubes for TV sets, has decided to reduce its dependence on lower-end tubes and is ramping up its focus on higher value-added products such as real flat picture tubes.

"We would like to reduce our dependence on cheap or lower-end tubes and focus more on real flat picture tubes. This would be in line with the changes happening in the consumer electronics market," Mr Satish Kaura, Chairman and Managing Director, Samtel Color, said.

Sharing his views on the company's future strategies, he told Business Line, "Next year the company would be rolling out 29-inch super flat picture tubes, and in the pipeline are the 15-inch real flat colour picture tubes. In fact, the company is expecting the 29-inch TV to contribute a major chunk to Samtel's revenue growth."

On whether there would be demand for the 15-inch category, Mr Kaura said, "The market trend shows that there is a definite demand for such products. Flat screens are here to stay. Further, the flat screen in small sizes will ensure growth in volumes. The company has been able to introduce picture tubes in tune with market demand mainly due to its own research and development facility. In fact, more products are in the offing."

Mr Kaura stated, "If you compare quarter by quarter the company has clocked a sharp growth. It has seen a steep increase in profit-to-sales ratio as well. The company's performance has reported a positive beginning for financial year 2005."

For the first quarter of 2004-05, Samtel Color clocked substantially higher net revenues at Rs 240.40 crore up from Rs 125.10 crore last year, a rise of 92 per cent.

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