Samsung IT arm to expand reach in East India

By Our Staff Correspondent

MUMBAI, SEPT. 3. Samsung Electronics India Information and Telecommunication (SEIIT), the 100 per cent IT and telecom subsidiary of Samsung Electronics, Korea, is targeting a 20 per cent contribution to its total turnover from Eastern India by December 2002. The eastern region at present contributes 7 per cent to the company's turnover.

The company has announced plans of increasing its reach in Eastern India, namely, Bihar, Jharkand, West Bengal, Orissa and most importantly the `seven sisters' of North East India. It will be expanding its channel and service networks to cover the entire region.

SEIIT has also announced the commencement of its $10 million PC monitor manufacturing plant in the country. The plant will have a capacity of one million units annually, which will be enhanced to four million units by 2003.

Mr. J. S. Jong, director, SEIIT, said, ``We have always been convinced of the potential of our products in Eastern India. We, however, wanted to introduce our topline products with the right channel partners and distribution strategy in place. Now that we are able to offer that, we are absolutely optimistic about our ability to deliver to the demands of this region and also convinced about this region's potential to add substantially to our projections."

With increased focus on this region, SEIIT is aiming to increase the region's contribution to turnover to 11 per cent by this year-end and up to 20 per cent by the end of 2002. Earlier this year, SEIIT announced a targeted turnover of Rs. 1,325 crores by the end of this calendar year.

The company also announced the setting up of local billing and logistics centres in Patna, Ranchi, Guwahati, Bhubaneswar apart from its existing operations in Kolkata. West Bengal will continue to be the pivot in the company's regional expansion plans - with the regional distribution centre in Kolkata.

To increase its reach across the eastern region, Samsung is targeting an increase in the number of active channel partners to over 450 from 150. This network will open up all of Samsung's IT and telecom products to this entire region.

The company is also setting up seven additional service centres across the eastern region to provide the best customer service support in the IT industry in the East. Service centres will be opened in Itanagar, Shillong, Asansol, Aizawl, Imphal and Siliguri in addition to the existing ones in Kolkata, Ranchi, Patna, Bhubaneswar and Guwahati.

Samsung will also be setting up four mobile plazas, a unique retail concept, in four places. The company claims a 22 per cent market share in the national mobile market. In Kolkata, it claims a market share of 29 per cent. The company will be investing in its retail and marketing initiatives in the eastern region to increase its presence.

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