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In a bid to strengthen its position in the LED television segment, Micromax Informatics is foraying into the Smart TV segment.
This is part of the company’s strategy to become a leading consumer durable brand in the long-term in the country. Earlier this year, the company forayed in the air-conditioners segment.
The company has launched its Canvas smart LED TV range starting at Rs 19,999, which will initially be launched online on Flipkart.
Rohan Agarwal, Vice President, Consumer Electronics, Micromax Informatics, said the company was looking to grab a market share of 12 per cent in FY17 and earn revenues of around Rs 1,500 crore from the LED TV segment. The company earned revenues of about Rs 1,000 crore selling LED TVs in FY16.
“We expect to grow at 40-50 per cent and aim to sell about 1-1.25 million units this fiscal. With the launch of our Smart TV range, we expect to garner a market share of about 5 per cent in this segment by this fiscal year-end,” he added.
As per industry estimates, smart TVs contribute about 8 per cent to the total LED TV segment, which is pegged at about 10 million units.
Agarwal said the company sees huge opportunity in the large base of consumers who own CRT TVs and are looking to upgrade to LED TVs. It also hopes to “democratise technology” for entry-level consumers and address their aspirations.
While several local players and international brands are vying for a share of the CRT TV replacement market, the company said it believed it had an edge with a “value-for-money” proposition and strong footprint of service centres and distribution network.
On the company’s diversification strategy in the non-mobility segments, Agarwal said: “For the next 1-2 years, we will continue to focus on strengthening our presence in the ACs and LED TVs segment. We are evaluating other segments and will look at entering other segments in the long term.”
The company is in the process of expanding its distribution network from the current 20,000 retail outlets to 30,000 outlets for its TV and AC products. While both these segments are highly competitive, Agarwal said these segments are also the fastest growing in the consumer durables space.
Micromax hopes that the consumer electronics business will contribute about 25 per cent to the company’s overall revenues in the next two years.
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