Domestic electronics manufacturer Simmtronics today said it will start producing set-top-boxes (STB) under its own brand name and is investing Rs 30 crore to ramp up its production facility.
"We have been manufacturing STBs for other companies but now we have decided to make it under our own brand name. Leading DTH and cable service companies have approached us," Simmtronics Managing Director Indrajit Sabharwal told PTI.
"We will be initially investing Rs 30 crore to ramp up our production facility at Greater Noida plant," he added.
The company has a manufacturing plant in excise duty-free zone which gives it an advantage to make STB 10-12 per cent cheaper than other manufacturers in the country, he said.
Also, government has declared STBs as Telecom Network Equipment, a move that will help domestic companies produce them at more competitive prices by availing tax exemptions as VAT would come down to 4 per cent from 12-14 per cent.
Sabharwal said that price competitiveness has attracted DTH and cable operators to directly procure from Simmtronics.
"Operators are cumulatively looking for about 10 lakh STBs in three months. We are working to meet their demand. Initially we will ramp up production capacity to 3 lakh unit per month and scale as per demand. First batch of production should be ready within 30 days," he said.
Simmtronics has plans to make STB with Wi-Fi router that will convert any television set into a Smart TV which will enable customers to browse You-Tube, Google, Facebook etc on existing television.
"We are looking for at least 10 per cent market share in STB business in India which will add a minimum of Rs 500 crore to our revenue in 2015. We plan to grow this business to very large volumes and intends to get 25 per cent market share in the next 2 years," Sabharwal said.
In the initial phases of cable TV digitisation, Indian manufacturers were able to secure only 5 per cent of the market as imported STBs were cheaper. Government later imposed some taxes on imported STBs which gave level playing field to domestic firms.
Simmtronics also manufactures mobile phones and tablets.
