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Our Bureau

`Marginal fall in revenues likely this fiscal'

SLIM MODELS: Mr V.G. Rajagopalan, Vice-President, Marketing, Sanyo BPL, and Mr Keiji Oshima, President and COO, unveiling the company's new slim TV models in Bangalore on Monday. — G.R.N. Somashekar

Bangalore , Sept. 25

Sanyo-BPL may see a marginal shortfall in revenues because of the reduction in raw material prices, which has led CTV makers to slash prices of television sets.

A company official told Business Line, on the sidelines of a press conference to announce the festival offer for customers, that raw material prices have fallen by 7-8 per cent.

This has led to a reduction in CTV prices. Even if the company manages to sell the targeted 6-lakh CTV sets by the end of the current fiscal, there is a possibility that the company may not be able to match its revenue targets.

"There could be a marginal revenue loss but if we are able to sell more numbers, we may reach our targets," an official said.

Revenue target

Sanyo BPL expects to post revenues of around Rs 450 crore during the first full year of operations. Its targeted revenues for three years, including the current fiscal, is around Rs 2,000 crore, which will help the company to breakeven by that period.

The official said Sanyo-BPL expects to have a market share of between 8 and 9 per cent by March 2007.

In three years, it expects to have a share of 16 per cent. By the end of the festive season, its market share is expected to be around eight per cent.

It currently has a share of about five per cent of the market and has so far sold 30,000 units of CTVs.

Campaigns

The official said all the campaigns will be under the Sanyo-BPL logo though the outlets will sell the two brands separately. By March 31 2007, the company expects to have around 16,000 outlets from the existing 6,500 outlets.

The official said the company expects to launch small frost-free and direct cool refrigerators sometime in October, which will be followed by the launch of twin-tub washing machines. The company will also start focussing on tier-II cities to drive its sales, the official said.

Sanyo-BPL, on Monday, announced the launch of two new models of 21 inch slim TVs.

According to Sanyo-BPL's President and Chief Operating Officer, Mr Keiji Oshima, the company expects to be the market leader in the slim TV segment by the end of this financial year. Sanyo-BPL's Vice-President for marketing, Mr V.G. Rajagopalan, said the company expects to have a market share of around 7 per cent during the festive season.

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