Date:05/05/2005 URL: http://www.thehindubusinessline.com/2005/05/05/stories/2005050501570400.htm

Back Philips eyes chunk of high-end CTV market

Neha Kaushik

New Delhi , May 4

WITH an increased thrust on the high-end segment, consumer electronics major Philips India is targeting a turnover of Rs 550 crore for its colour television in the current year, up from the Rs 400 crore in the last year.

According to Mr Suresh Sukumaran, Business Head - Televisions, Consumer Electronics, Philips India, while in 2004 the company generated 20 per cent of total CTV value sales from sales of high-end CTVs such as plasma, LCD, projector and so on, the figure is expected to increase to 33 per cent in the current year.

"The value growth in the high-end segment for the industry itself is around 300 per cent. Interestingly, the smaller towns are pushing growth for the segment, which is why we are now appointing an exclusive distributor for high-end CTVs in the Northern region. Another factor for growth in this segment has been price erosion. While on an average, the price erosion for CTVs is around 10 per cent, it is about 20-25 per cent in the case of high-end CTVs. We are targeting a market share of about 25 per cent in this segment in the current year and our new communication will also revolve around our high-end range," Mr Sukumaran said.

Philips, at the same time, would continue its focus on the entry-level segment, which accounted for about 55 per cent of CTV value sales for the company last year. The company will continue with its Vardaan sub-brand for the base-end CTVs, and an entry level pricing of Rs 5,590 (for a 14-inch set).