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Volume: II

May 25, 2007

Consumer Durables

Share Prices

 

 

BSE share prices as on May 15, 2007

Sales and Market Share

 

Source: Euromonitor Report- Consumer Electronics- India- April 2007

 

 

68. TV Sales Surge 46% In India – May 15

TV sales increase by 46% in India in 2007

The sales of colour televisions (CTVs) increased by nearly 46% to touch 2.87 million units in Q1’07 (January-March). Hoping to make utmost profits during the World Cup, major CTV manufacturers announced attractive offers for mainly top-end TVs. Growth in the CTV industry was led by a steep increase in sales of flat panel TVs (FPTV), liquid crystal display (LCD) and plasma, pegged at approximately 70,000 units during the January-March quarter. The LCD TV market has been buoyant over the past couple of years, and the Q1’07 saw an average price drop of 39% and sales growth of 900%.

 

Source: The Times of India

 

 

69. Voltas Q4 PAT Up Five Fold At Rs 120 Cr – May 14

Voltas records profit of Rs 120 Cr

Voltas Ltd, a Tata enterprise, recorded an increase in net profit at Rs 120 crore for Q4 ended March 31, 2007. The company’s net sales increased by 38 % to Rs 730 crore for the Q4’06-’07, compared to Rs 530 crore in the Q4’05-‘06.  For FY 2006-‘07, its profit grew to Rs 186 crore, as against Rs 70 crore in the FY 2005-‘06. Net sales increased by 29% to Rs 2,451 crore in the FY 2006-‘07

 

Source: The Economic Times

 

  

70. Canon Looks To Double Biz, Launches 24 Products – May 10

Canon aims to double its business and launch 24 products

To double its turnover from Rs 400 (2006) to 800 crore (in 2008), Canon India is targeting revenues of Rs 550 crore in 2007. In Q1’07, Canon India reported revenues of Rs 120 crore, up 42% against Q1’06. On May 09, it launched 24 new products, including digital cameras, printers and digital video camcorders, priced in the range of Rs 2,995 to 5.5 lakhs.  Canon India also announced plans to open its first exclusive stores in Delhi and Mumbai, followed by two more in Bangalore and Karnataka, in 2007. The company has also partnered with 13 leading retail chains, including Reliance Retail, Tatas’ Croma, Metro Cash & Carry and Hypercity, for distributing its products.

 

Source: The Economic Times

 

 

71. Homes Turning White And Brown For Good – May 01

Rise in ownership of consumer durables

According to the findings of the National Sample Survey Organization (NSSO) from its 61st round, the ownership of consumer durables is growing steadily in both rural and urban areas.  Approximately 66% of urban homes and 26% of rural homes owned TV sets in 2004-‘05. The comparable figures were 7% lower in both cases in 1999-2000. According to the report, among the durables, urban India has been spending more on the repair of land and buildings and less on TV sets and gold ornaments. A rise in the per capita expenditure of telephone, petrol and education was also experienced.

 

Source: The Economic Times

 

 

72. Samsung Eyes 20% Rise In FY08 Revenues – April 21

Revenues for Samsung to grow by 20% in 2008

Samsung India, a Korean electronics major, expects its sales revenue to increase by 20%, to $1.2 billion in FY 2008, compared to $1 billion in FY 2007. It expects to sell 200,000 units of flat panel TVs, including LCD and Plasma TV, this year. The company is looking at large format chains, such as Reliance, Croma and Next, to contribute 8 to 10% to its total sales in two years.              

 

Source: Business Standard

 

Trends, Marketing Initiatives and Others

 

 

73. Videocon Group May Float Separate Co For After- Sales – May 15

Videocon likely to introduce a new after-sales company

The Videocon Group is expected to float a separate company to cater to after-sales services for its various consumer durable brands. According to Eric Braganza, Chief Operating Officer, Electrolux Division, Videocon Industries, "We could look at the possibility of having a separate company for after-sales services. This would be relevant to all the Videocon Group brands as it is important to have a dedicated unit to cater to after-sales services".

 

Source: The Hindu Business Line

 

 

74. Panasonic To Revamp Sales Network – May 13

Panasonic to improve its sales network

Japanese consumer electronics major Panasonic has started to improve its distribution network across the country, while setting an ambitious target of Rs 500-crores turnover by the end of 2007-08. "We have a turnover of less than Rs 200 crore now. Revamping of distribution network is crucial to achieve the target as more than 80% of sales come from this channel", said Panasonic India Director (Sales and Marketing) P Yathindra Nath. The company, at present, has few brand stores selling only Panasonic products, and low presence in direct stores selling multi-brands. It plans to promote an exclusive brand channel along with institutional sales.

 

Source: The Economic Times

 

 

75. LG To Custom-Design Appliances In India – May 01

LG to custom-design appliances

One of the India’s largest consumer durable and electronics marketer, LG India, has started research and development through its Life science division, to custom-design home appliance products, specifically for India. These India-centric products will primarily be in the refrigerator and washing machines’ segments. They are scheduled to be introduced in the coming two years.

 

Source: The Economic Times

 

 

76. TV Prices Stabilising, Cos Expect 15% Fall – April 30

TV companies expect a 15% fall in prices

Consumer electronics majors, including LG, Samsung, Haier and Videocon, expect prices for liquid crystal display (LCD)/plasma TVs to fall by only 15% in 2007, compared to the fall of 35 to 40% levels, witnessed during the past three years. Companies are planning to restrict price cuts to maintain margins, since consumer demand is not as bullish as expected. Interestingly, the players are also drawing up plans to assemble LCDs in India to improve bottom-line and enhance inventory control.

 

 Source: The Economic Times

 

 

77. Whirlpool To Invest $20 M To Launch New Products – April 19

Whirlpool to launch new products

According to company sources, in the coming 15 to 18 months, Whirlpool of India, a subsidiary of Whirlpool Corporation, will invest approximately $20 million to launch new products. Whirlpool is likely to introduce ovens during this period. On April 19, 2007, the company launched a wide range of products, including Whirlpool Mastermind refrigerator, Sensation Neo washing machine, Magicool air conditioner and 100% automatic clothes dryer.

 

Source: The Economic Times

 

 

78. Frost-Free Segment Turns Hot As Consumers Go For High Value – April 19

Companies focus on frost-free refrigerators

Energy efficiency, super cooling and new improved models are pushing the growth of frost-free refrigerators segment. Players, such as LG, Whirlpool, Samsung and Videocon, are hawking their models on the wellbeing platform and focusing on convenience and hygiene. In 2007, Samsung expects 45% of its refrigerator sales to come from the frost-free segment. LG India, the segment’s leader with a market share of 26%, is aggressively focusing on its range of Green Ion Door-Cooling refrigerators.

 

Source: The Economic Times

 

 

Product Launches

 

 

79. LG India Eyes Rs 450cr Turnover From Audiovideo Biz – May 08

South Korean consumer electronics company LG launched ‘touche’ range of high-end home theatres, lifestyle audio systems, MP3 players, high-definition (HD) DVDs and dual format HD disc players in India.

 

 

80. Philips Unveils New MP3 Players – May 07

Philips Electronics India introduced the ‘GoGear' range of portable, digital audio/video MP3 players with a storage capacity of 1 to 2 gigabytes in India. The product is targeted at music loving youngsters. They are available at select multi-brand consumer electronics outlets and the company's network of exclusive brand shops.

 

 

81. Whirlpool Introduces More Premium Range – April 27

During the third week of April 2007, Whirlpool India introduced fully automatic clothes dryer, priced at Rs 20,000, and to be distributed in urban areas.  In the second half of 2007, in partnership with a European firm, Whirlpool will bring modular kitchenware into the Indian market.

 

 

82. Godrej & Boyce to roll out CTVs in East, South – April 26

Godrej & Boyce Manufacturing Company Ltd’s appliance division plans to launch its pilot project of introducing Godrej-branded LCDs and Plasma Colour televisions in Indian’s southern and eastern markets by the second quarter of 2007.

 

 

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