Kenstar eyes Rs 300 crore from TV sales in south

Kenstar India Limited is aiming at a turnover of Rs 275-300 crore from the sale of flat, plasma and LCD TVs during this fiscal. The company recently launched its TV products across south India.

"In the first year, we are expecting to capture a 4-5 per cent market share in the southern LCD TV market. We have targeted to achieve a turnover of about Rs 275-300 crore by selling about 2 lakh units in 2006-07," C Sreekanth Swamy, general manager (consumer electronics), Kenstar India, told Business Standard.

During 2006-07, the company is expecting the TV segment to contribute 50-55 per cent to its Rs 500 crore-plus total turnover. But, by 2007-08, the TV segment's share in the company's total turnover could touch 60-70 per cent.

The company launched its TVs first in Karnataka a few days back. In Andhra Pradesh, it started its launch in Visakhapatnam and hopes to complete the launch in all the cities in south India by the end of June. "By the end of March 2007, we will complete launching our products across the country," he said.

In south India, Kenstar is expecting 4-5 per cent market share during the current year and hopes to increase it to 8-9 per in 2007-08. To reach the target, apart from increasing the retail dealer network, the company will spend Rs 12-13 crore on advertisements.

Sreekanth Swamy said the company had introduced 8 colour TV models, and by the end of June, it would release another 10 models.

He said that Kenstar was targeting small towns for the sale of its TVs as the consumer electronic market was shrinking by 20 per cent in metros in the country and at the same time the market for the products increased by 30 per cent in rural and semi-urban areas.

"Because of the new market strategy, we are expecting 55 per cent sales from rural and semi urban areas," he added. Kenstar has colour TV assembly units in Aurangabad, Hyderabad, Bangalore, Gandhi Nagar and one in the North East.