**OT** Economic Trend - Consumer Goods
Matsushita: A sleeping giant awakens
Partha Ghosh
NEW DELHI, Feb. 13
AFTER years of slumber in the Indian marketplace, a recharged Matsushita Television and Audio India Ltd (MTAIL), which sells the Panasonic and National brands of consumer electronic products, has charted out a programme aimed at turning it into largest consumer electronics firm.
While the company is in the midst of outlining an aggressive marketing strategy, envisaging doubling its volume sales and revenues for fiscal 2000-2001, it also plans to initiate a proposal, after March 31, to inject more equity for funding a large-scale capacity expansion next year.
MTAIL's Managing Director, Mr. Yasuo Ozasa, told Business Line that the company is targeting volume sales of 240,000 CTV sets in fiscal 2000-2001, compared to around 120,000 sets sold in 1999-2000. This reflects a 100 per cent growth in sales, and is expected to result in a market share of over 7 per cent, up from the existing 2.8 per cent. Sales turnover of the public listed company is also likely to double to Rs. 480 crores ($ 107 mil)in 2000-2001, compared to Rs. 240 crores ($53.5 mil) in 1999-2000, Mr. Ozasa said.
He said Matsushita would require additional equity investment to fund an expansion programme next year. So far, around Rs. 50 crores has been invested in MTAIL and Rs. 75 crores in National Panasonic India Ltd (NPIL), the marketing venture of the group in India. Mr. Ozasa said he was not in a position to indicate the amount of foreign investment required. He added that a detailed study would be conducted after March 31.
He said that there was a possibility of the company setting up a new television manufacturing plant other than the one it owns in Greater Noida, near Delhi. The existing plant is getting a face-lift using internal accruals, and its capacity utilisation is being doubled, said Mr. Gurdeep Singh, Director (Marketing, Sales and Service).
The induction of Mr. Singh as Head of Marketing last year, and the appointment of Mr. Ozasa as MD of both MTAIL and NPIL, was directed at bringing synergy between the two companies and to give a focus to the company's plans. Mr. Ozasa said the two companies were difficult to merge, as one had public shareholding of around 18 per cent, and the other (NPIL), is a wholly-owned subsidiary.
Outlining his plans, Mr. Singh said that it was found that "trade loves the brand. Investors feel this is a blue-chip company and many feel that Panasonic is a sleeping giant which needs to be given a good shake-up." He added that in recent meetings, the company had taken stock of the strengths of the brand and decided to "leverage on the advantages".
"So, we now have a three-pronged strategy. We have tried to instill confidence among the trade by bringing the two companies under one MD. We have also had dealer conferences and digital exhibitions focusing on our plans. Besides, we have launched new products within a few months of their global launch _ Tau TVs _ to remove the myth that we are not bringing the latest technology here. We are also hiring the best of the industry to work for us. This will relay a message across the trade that things are `happening' in MTAIL and NPIL,' Mr. Singh said.
He said Panasonic would launch new models of televisions, and most of the latest launches will be in the flat tube segment. ``Our TV range will comprise 65 per cent with round tubes and 35 per cent flats,' he said.
Plans are also afoot to set up one-stop consumer durables brand-shops across the country. Mr. Ozasa said Matsushita was the only company in India to offer the entire range of household and consumer electronics products _ from TVs, audio systems, DVDs, washing machines, air-conditioners and microwaves to rice-cookers, torches and dry cells. The Panasonic and National brands will be promoted together, he said.
(Mr. Yasuo Ozasa, Managing Director, National Panasonic India.
-BusinessLine
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Monday, February 14 8:37 AM SGT
Samsung India Posts 60 PCT Sales Growth for 1999
NEW DELHI, Feb 14 Asia Pulse - Samsung India has announced almost 60 per cent higher sales turnover at Rs 8.5 billion in calendar year 1999 over the previous year, with Rs 320 million as net profit.
The company, which is targetting Rs 15 billion sales turnover this year, said colour televisions was its major focus area and it would soon be offering customised CTVs to the Indian consumers through its new research and development facility at Noida.
"We have invested US$5 million in the new R&D facility at Noida, near Delhi which will support designing requirements for Indian as well as neighbouring markets," managing Director of Samsung Electronics India Limited (SEIL) K'S Kim told reporters here.
The R&D team comprising design and development unit, a mechanical and material development group would study customer preferences and incorporate changes in the design of the existing CTVs and develop new designs for the Indian market, Kim added.
"The market in India in the consumer segment is growing and we want to offer our consumers the latest in terms of technology and service," he said.
(PTI) |
