Videocon, BPL slash CTV prices

NEW DELHI, JAN. 26. With colour television (CTV) sales expected to show negative growth this year, consumer durables majors including Videocon and BPL have slashed prices effective today by up to Rs. 1,500 to boost sales and improve the depressed market.

Videocon, whose core brand CTV sales have fallen by up to 20 per cent this fiscal to 10 lakh units, has effected price cuts upwards of Rs. 1,000 across all screen sizes and models of its televisions effective January 26.

Chairman of Videocon International, Mr. V. N. Dhoot told PTI that ``We have slashed prices of CTVs by up to Rs. 1,500. The 20 inch TV is now available for Rs. 8,990 against Rs. 10,000 earlier; 21 inch set is priced at Rs. 9,990 against Rs. 11,000." While Mr. Dhoot said the reason for this price drop was the fact that the company had been able to cut production costs by up to 10 per cent, marketwatchers attribute this price cut purely to boost sagging sales.

``The CTV market is passing through a difficult phase. We expect sales to touch barely 4.9 million units this fiscal against 5 million in 1999-2000. Price cuts which some players have announced are a direct consequence of falling sales," past- president of Consumer Electronics and TV Manufacturers Association (Cetma), Mr. K. S. Raman, said.

Market leader BPL has also announced a price cut for its 20-inch CTVs as well as the Neptune series by up to Rs. 1,000. Despite repeated attempts, however, company officials could not be contacted for comments.

Mr. Dhoot also announced price cuts for refrigerators (165 and 210 litre direct cool) and washing machines, with effect from today, saying these price cuts were direct fallouts of production cost reduction.

``We have invested heavily in component manufacturing which inherently saves costs. Besides, we have taken a conscious decision to cut costs across all our functions to beat the slump in the consumer durables market," he said.

Videocon has slashed refrigerator prices by up to Rs. 1,000 and up to Rs. 800 for washing machines. Mr. Dhoot said this was possible since the company manufactured glass shells, an input into picture tube manufacturing for colour TVs, picture tubes, compressors, integrated circuits (ICs) and printed circuit boards (PCBs) in-house. The company claims to be one of the very few ones which have invested in component manufacturing to the tune of Rs. 2,500 crores over the last six years.

Videocon is pinning hopes on the two foreign brands under its wings - Sansui and Akai - to achieve 20 lakh CTV sales this year, after Videocon brand sales have slipped. The group sold only 10 lakh core brand sets against seven lakh combined sales for Sansui and Akai put together.

He said last year five lakh Sansui and Akai television sets were sold, and the marketing strategy for this year was to concentrate on pushing these two brands so that the group achieves a sales target of 20 lakh CTVs in 2001.

- PTI

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