Videocon to focus on Pakistan CTV mart

Even before the ink has dried on the South Asian Free Trade Agreement signed in Islamabad on January 6, Videocon International has laid out plans to capture a third of the two million units a year Pakistani colour television (CTV) market.

The company had sent a team to Pakistan six months ago to evaluate the market, said V N Dhoot, chairman, Videocon International.

The CTV market in Pakistan is dominated by local brands with MNC players like LG and Sony accounting for just 18 per cent.

"Indian electronic products are considered of a better quality than Chinese imports. So within a year we hope to capture a third of the market," said Dhoot.

His team's research has shown that the MNC brands are considered too premium in Pakistan, and the demand is huge for CTVs in the sub Rs 10,000 price range.

"A brand like Sansui is a perfect in such a market," he added.

Videocon has a manufacturing base in neighbouring Bangladesh but the operations had run into trouble last year.

"Now that the business environment is congenial all across south Asia, we will soon sort out our problems in Bangladesh as well," Dhoot Said.

The company has a combined market share of nearly 30 per cent in India with its three colour TV (CTV) brands "" Videocon, Akai, Toshiba and Sansui.

Dhoot is not alone in drafting such plans as other Indian CTV makers like BPL and Salora are also studying the opportunity.

"Pakistan is potentially a big market and we are closely examining the ways we can tap the opportunity," said Ajit Nambiar, chairman, BPL Ltd.

"The consumer requirement in both the countries is more or less the same. So price-positioning of products becomes easy. Opening up of the Pakistan market means we all can utilise our capacities much better," said Rajeev Karwal, CEO Electrolux India.

Television manufacturer Salora already exports around 3,000 black & white televisions and CTVs to Bangladesh.

According to a company source, the Pakistan opportunity might even revive the company's flagging fortunes in India.