Samsung eyes $3 bn sales from India

Korean consumer durables major Samsung today said it is aiming over $3 billion (around Rs 14,000 crore) revenue in 2010 from India that would help it topple compatriot LG from the top slot in the country.

In 2009, Samsung had clocked sales of $2.2 billion (Rs 10,200 crore) sales in India and is expecting it to grow by 40 per cent over this calendar year.

"Last year, we had sales of over $2.2 billion and in the current year, we are expecting turnover of more than $3 billion with 40 per cent growth," Samsung India Deputy Managing Director Ravinder Zutshi said here.

If Samsung is able to achieve a growth of 40 per cent in the current year, it would become the 'number one electronic company in the country', Zutshi claimed.

Interestingly, LG is the leading player in the consumer durables market in India with a turnover of around 13,000 crore in 2009 and is targeting a turnover of Rs 19,000 crore in 2010.

Samsung today rolled out a new, 'S' series air-conditioners (AC) in the domestic market, which doesn't require stabilizers in case voltage fluctuations.

The company said its new AC manufacturing unit at Noida with a capacity of 0.6 million will start production this week while its second AC facility has already started manufacturing.

"With the addition of new manufacturing line, the total AC capacity of the company has gone up to 1.2 million units," Zutshi said.

Last year, the total sales of ACs were at 5 lakh units and with the commissioning of additional capacities, the company is targeting a 100 per cent growth in its AC sales at over a million units.

"Last year, ACs contributed around 8-9 per cent to the total turnover of the company and this year, with 100 per cent growth, we are expecting the segment to contribute around 15 per cent to the total sales of the company," Zutshi said.

Asked about investments he said, last year the total investments in promotional activities were around 3-4 per cent and this year also it would remain at the same level.