Taiwanese firms eye growing PC market in India

With the personal computer (PC) market projected to touch 10 million units a year by 2008, leading Taiwanese computer makers are drawing up plans for India.

According to market research firm Skoch Consultancy, companies like ACI, Kobian and Esys are surveying the Indian market to identify business possibilities here.

The latest Taiwanese company to enter the Indian computer market is BenQ, with its array of mobile phones and notebook computers.

"These companies see an opportunity in India as the market is projected to grow at over 50 per cent in 2004 to reach 1.2 million units," said Sameer Kochar, chief executive, Skoch Consulting. Taiwanese PC companies are expected to target the home segment as well as the notebook market.

These companies will offer comparatively low-priced computers in India. For example, a laptop computer from a Taiwanese company would cost about Rs 40,000 "" the price of a high-end PC now available in India.

Also, at just 90,000 units in 2003 notebook computers have a low penetration in India. This is being seen as a great market opportunity by the Taiwanese companies.

However, these companies are not likely to set up manufacturing bases in India as their existing facilities in Taiwan have enough capacity.

Moreover, with low duty rates here and the adoption of a zero-duty structure for computer hardware by 2005, these companies do not stand to lose their price advantage.

"These companies enjoy a price advantage over Indian companies, and with import duties for computers and components coming down in India they will be in a position to offer their products at comparatively lower prices," a market source said.

Kochar also points out that some Indian companies are not in a position to grab the growth opportunity in India as their marketing strategies are not in place.

"Among the issues are poor retail footprint, low marketing spends, slow organisational ramp-ups, indifferent services and low vibrancy in the product range," he said.

PC boom

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• PC market in India is projected to grow at over 50 per cent in 2004 to reach 1.2 million units
• At just 90,000 units in 2003, notebook computers have a low penetration in India
• Companies like ACI, Kobian and Esys are surveying the Indian market to identify business possibilities here
• With low duty rates here and the adoption of a zero-duty structure for computer hardware by 2005, these firms have a price advantage