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Nirmal D. Menon

Mumbai , Feb. 16

PHILIPS India plans to ramp up its distribution facility for PC monitors on back of the parent company's manufacturing tie-up with China-based TPV Technology in December last year.

The consumer electronics major will increase its second-tier distribution facility or business partners from the present 100 to 500 partners. It will also augment its third-tier distribution base or system integrators from 1,500 on hand to 5,000 by the year-end.

"Following our tie-up with TPV, which makes us the world's largest manufacturer of PC monitors, we have planned to increase distribution depth by increasing field force, people working at customer end, and our star partner," Mr Ankan Biswas, General Manager, Multimedia Display & Digital Network, Philips India, told Business Line. This manufacturing tie-up with TPV makes it the world's largest cathode ray tube (CRT) and Liquid Crystal Display (LCD), and such volume manufacturing alliance brings not only the benefit of greater economies of scale, but also stronger R&D capabilities, improved purchasing power, on top of a wider geographical spread, claimed Mr Biswas.

The company is also planning to extend its point-of-sale initiatives from metro to non-metro cities. The underlying strategy is to prompt non-metro users towards buying assembled PCs with Philips monitor as against branded ones.

"We intend to focus on B&C cities as small businesses in these cities are growing faster, and it is cost-effective for most of these businesses to adopt assembled PCs. Keeping this in mind, we have lined up a host of training programmes for system integrators in these areas," Mr Biswas added.

The total demand for both branded and non-branded PC monitor is around 3.6 million units. According to IDC report on PC monitors, Philips had a market share of 6 per cent in July to September 2004, which grew to 8.5 per cent in October to December 2004. It holds third position after Samsung and LG.

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