Philips to double TV exports to Russia

Philips India Limited (PIL) is set to double its 21-inch flat TV exports to Russia from Rs 70 crore in 2004 to Rs 140 crore this year.

"We will sell the television sets to our internal customer- Philips Russia. The TV sales will be restricted to 21-inch flat TVs as we do not manufacture 25 or 29 inch flat picture tubes in India," said D Shivakumar, executive director and senior VP-consumer electronics, PIL.

The company, however, has no plans of exporting TVs to other countries at present as most of the countries have long-established sourcing or manufacturing capabilities.

It also envisages a 10-15 per cent increase in exports of radio and music systems that accounted for sales to the tune of Rs 10-20 crore in 2004.

"We export radios and low and mid-end audio systems to Africa besides the TV exports to Russia," added Shivakumar. PIL manufactures most of its TVs and music systems at its Pune manufacturing facility.

While the company has been exporting audio systems for the past four to five years, it has started exporting TVs last year only. However, the company does not intend to export addtional products as it has sourcing arrangements for most products globally.

India is also not likely to become a major sourcing hub for its global operations as PIL does not operate on a big scale here. "The cost benefit will only come with economies of scale and at present we do not have that," asserted Shivakumar.

On the domestic front, PIL sees growth coming from across its product portfolio including TVs, audio systems and cell phones. In the super-premium segment (products in the Rs 75,000 plus range) the company expects to double its current 2-3 per cent contribution to its overall revenues.

In 2004, exports contributed 6-7 per cent of PIL's overall revenues.

This figue is expected to increase to 8-10 per cent this year. PIL is targeting a double digit growth in its turnover in 2005. The company's revenues in 2004 were estimated to be around Rs 2,100 crore.