The Hindu Business Line : Philips eyes over Rs 1,200 cr turnover

PHILIPS Electronics India Ltd expects sales of DVD to cross eight lakh units, while colour televisions (CTV) could cross seven lakh units, taking its turnover beyond Rs 1,200 crore. "We are adding one new segment every year and if it was DVDs last year, we are engineering the growth of our home entertainment systems segment this time,'' said Mr S. Nagarajan, Director, Sales and Service, Consumer electronics, PEIL.

Revenues for the company have doubled since it earned Rs 626 crore in 2003-04 (Rs 950 crore in 04-05) to the expected Rs 1,200 crore in 2005-06, driven by the momentum of CTV, DVDs and audio products.

Philips, which launched its 42nd branded showroom, Arena in Bangalore here, says it expects about 10-12 per cent of its turnover from the Arena showrooms, and will close the year with about 75 such outlets. "We are a technology company and most retail situations do not let us showcase our technologies — the Arena gives an opportunity to present our technologies in the right ambience and lets the consumer experience the product before buying," said Mr Nagarajan. He added that the aim was to drive growth for all Philips products, not to compete with channel partners.

The festival season, starting off with Onam in Kerala, saw Philips grow 61 per cent in the Kerala market, followed by robust growth in West Bengal and Orissa for the Puja, while the Dusshera and Diwali season will see good growth from Karnataka, Tamil Nadu and so on, especially metros such as Bangalore and Chennai.

"The year will see us exit with a nine per cent share of the CTV market, the highest ever in six years, and the momentum will increase with the flat, slim and wide categories, where sales are set to boom. That will push Philips into being the number four player, up one rank from its fifth position," Mr Nagarajan said.

The others in the race are LG, Samsung, Onida and Sony/Videocon, though the latter claims a market leader status (likely based on all its brands put together).

In the year to date, the consumer electronics market is down 3.8 per cent by volume and 10.7 per cent by value, while Philips has grown at 15.3 per cent by volume and 10.8 per cent by value, Mr Nagarajan said. Though VAT took a toll, there is need for more value engineering by all players to cater to the Indian market, he added.

The company has also launched a slew of promotions, and tied up with financing companies, GE and Citibank, to offer customers purchasing options. It also expects to bolster its FIFA Soccer sponsorship with promotions in the run-up to the matches in June.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page