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K. Giriprakash

Bangalore , Feb. 16

THE marketing alliance between Videocon and Hyundai Electronics has turned out to be a money spinner for both the players as Hyundai is set to record a whopping 300 per cent increase in sales in its first full year of operations in the country.

The Hyundai Electronics India Chief Executive Officer, Mr A.V. Dhoot, told Business Line that the company expects to record sales of around Rs 400 crore during this fiscal. The Videocon Group markets Hyundai's consumer electronics products in India under a licensing arrangement with the South Korean giant, Hyundai.

Mr Dhoot, however, said that the plans to launch mobile phones in India has been put off because the parent company in South Korea had decided to postpone its launch. But Hyundai will launch a slew of other products in the Indian market soon, he said. Mr Dhoot said with the addition of Hyundai's products on Videocon's portfolio, the Indian company now has a full range of products in all the categories.

He said the company will spend around Rs 50 crore in this fiscal for its marketing activities. He said the company will focus more on air-conditioners and plasma and LCD TVs next fiscal. He pointed out as Hyundai products have been positioned in the premium segment, its sales have not eaten into the sales of Videocon. "In fact, Videocon now has a complete range of products in every segment of the market," Mr Dhoot said.

Mr Dhoot said in the flat CTV market, Hyundai has a share of 1.5 per cent as per the January-October, 2005 ORG figures. Currently, in the white goods category, Hyundai has got air-conditioners. "We will soon launch the other appliances in all our markets. AC is a very seasonal product and we've just had one season since the launch. There are a lot of expectations in the forthcoming season," Mr Dhoot said.

Mr Dhoot said because of the growing demand for technologically superior products, all Hyundai products have innovative features. While the CTVs came with the in-built FM receivers, the ACs have blue fin technology, a special corrosion resistant coating that results in enhanced cooling performance and higher energy efficiency. The DVD players from Hyundai have in-built amplifiers.

He said it was easier for Hyundai to find acceptance in the market because as a brand Hyundai was already present in the market and the trade had an aspirational value attached to this brand and it was perceived as the next successful Korean brand in durables.

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