Mitashi jumps on to LCD TV bandwagon

After making its presence felt in the gaming and audio-video market, Mumbai-based Mitashi Edutainment is entering the LCD TV segment with 17-inch and 19-inch models.

Priced between Rs 19,990 and Rs 21,990, the models are aimed at the small office segment and homes. 

"We believe in fast-changing technology and giving our customers value for money. Our LCD televisions are ideal for small offices, shops and bedrooms," said Rakesh Dugar, founding partner, Mitashi. "

The televisions will be marketed through distributors and alliances with organised retail chains. The company already has such tie-ups with Vijay Sales in Mumbai, Viveks in Chennai, Lotus in Indore and Sales India in Ahmedabad, besides a strong distributor network. 

Like all its products, Mitashi will outsource the LCD TV production to China. "Outsourcing helps us to be with the fast-changing technology," said Dugar.

The size of the domestic LCD TV market was estimated at 18,000 units in 2005 and is expected to touch 2.3 lakh units this financial year. It is estimated to touch 5 lakh units by the end of 2007-08. 

On the maturity of the LCD TV market in the country, former Consumer Electronics and TV Manufacturers Association (CETMA) president K S Raman said, "Anyone who plans to buy a television has LCD TV in his mind, but affordability is a major factor. Many are not able to buy it because of its high price. This the main reason of marketing LCD TVs mainly in metros and cash-rich segments." 

The market can be divided into two categories "" 26-32 inch and above, and 20-inch and televisions smaller than that. 

According to industry sources, Samsung holds around 60 per cent of the market share. The rest is shared among Sony, LG and Videocon. Videocon, however, is a major player in the 20-inch LCD TV category, while small players' share is not more than 15 per cent.

"If prices come to an affordable level and availability increases in the 20-inch-and-below category, the LCD TV market will improve further. With this, rural markets too come into picture," added Raman.

Besides LCD TV, Mitashi is planning to expand its presence in southern India for its electronics products through distribution and tie-ups with organised retail chains.

The company has doubled its revenues in the last 2 to 3 years and founder partners Rakesh Dugar and Hansmukh Gada are confident of doubling it again next year. The privately held company, however, refused to divulge any numbers.