STC may launch mobile phones for Hyundai

State Trading Corporation (STC) today said that it would evaluate the option of setting up a mobile handset facility in India.

Hyundai Mobile today entered into a strategic partnership with STC for selling mobile phones in the country under which the public sector company would provide import funding assistance of Rs 200 crore for the first year.

STC chairman and managing director Aravind Pandalai said, "Looking at the response, we may consider manufacturing mobile handsets at a later stage."

"Under our new plan, we intend to enter the Information Technology (IT) and textile exports segment. IT and convergence will be the new growth areas for any trading company and we do have plans to re-enter into it in a big way," he added.

Pandalai also said that the STC privatisation programme was on the backburner. "At least that is what it appears and I have not heard anything from the government for a while," Pandalai said.

He added that the company's main concern was to grow the business and not ownership.

He said the public sector company was targeting a $3 billion turnover during the current financial year as against around $2 billion last year. It's turnover had grown over 54 per cent to Rs 5,050 crore in the first half of 2004-05.

The handsets are to be priced at between Rs 3,900 and Rs 1 lakh with Hyundai targeting 10 million users in India over the next five years, Vijay Singh vice chairman and managing director Hyundai India Telecom said. Hyundai India will spend Rs 45 crore, of which Rs 20 crore would be used for capital expenditure and Rs 25 crore for advertising expenses in the first year.

India has over 43 million mobile users and the subscriber base is expected to double next year.

PSU rings in mobiles

• State Trading Corporation will provide import funding assistance of Rs 200 crore for the first year
• STC also plans to enter the IT and textile exports segment
• The company is targeting a $3billion turnover during the current financial year
• The handsets are to be priced at between Rs 3,900 and Rs 1 lakh
• Private labels for two new business categories, beverages and homes, will be launched shortly
• Beverages to fall under the umbrella of Food Bazaar