What are Zenith’s expansion plans?

We are increasing our channel base and corporate base. TATA Group, IBM and other major companies are our clients and we plan to consolidate the corporate base further.

What challenges do the Indian hardware companies face in the domestic market?

There has been a steep drop in prices. To absorb the impact of the price falls, companies have to sell 25 per cent more to meet the same margins, which means that the IT industry is two steps forward and one step back. The decrease in price is a sign of commoditisation of the industry.

However, there is a certain limit to which prices can come down. I don't expect laptop prices to sink below Rs 20,000. The Indian market is bullish about low-cost computing solutions.

If the price point of a PC per user comes down, India has the ability to absorb 10-20 million PCs a year for the next several years.

What are the latest trends on the consumer front?

There’s a slight shift in consumer behaviour. A chunk of customers (youth and working class) are buying high-end products. The price sensitivity mindset is diluting. People are shifting to LCDs from CRT.

What are Zenith’s plans to tap the high-end consumer product market in India?

Our venture with California-based brand Vu is catering to the high-end products’ market and we are now planning to open premium retail outlets in Delhi. Vu Technologies, an enterprise of Zenith Computers Ltd, unveiled the BOSS PC Limited Edition in India in 2007.

The exclusive PC range is designed specifically for the top honchos of the industry with the aim to capture the booming niche products market. The USP of Vu Technologies is customisation and luxury technology.

How does Zenith keep pace with the lifestyle segment?

Vu PCs and LCDs are designed to satiate the lifestyle segment. Vu will bring the latest in luxury technology from across the world to India. The recently launched lines of products called the Zenith Admiral, Director and Presidio are in line with the lifestyle aspirations.

Does Zenith have a plan to replicate the nano phenomenon with ultra-cheap computer?

We have just launched three brand new ultra-portable laptops in the sub 30K category. Our basic notebook (Zenith Director) costs Rs 24,990 without the operating system (OS).

The notebook with the OS is Rs 25,500. We have an agreement with Microsoft to bundle the Windows Vista Starter Edition with our laptops at an attractive price-point. So Zenith provides the latest technology but at a much better price-point.

What are Zenith’s retail strategies?

Zenith has 900 authorised dealers and 450 exclusive retail showrooms called 'Zenith PC World' across India. As far as Vu Technologies is concerned, we plan to sell the latest in luxury technology in a unique retail environment and plan to open 30 stores across India in the next two years. We already have luxury stores in Mumbai, Ahmedabad and Pune.

What about exports?

We export Zenith PCs to Europe, South Africa, Asia and West Asia. Now we are looking at South America and Costa Rica.