Videocon plans new set-top box plant with 1 mn annual capacity

Videocon Industries will set up a new set-top box manufacturing unit with an annual capacity of one million by the end of this year.
"We will set up another plant that will have a production capacity of 1 million units annually by end of 2014. We want to do more. We have not decided but we are evaluating either setting it up in Punjab or Madhya Pradesh," Videocon Industries Director Anirudh Dhoot told PTI in an interview.
Dhoot said it is easy to produce STBs in India because of new production technologies and equipments.
Videocon d2h, the DTH arm of Videocon group, is one of the fastest growing Direct-To-Home service providers in India.

The Budget 2013-14 presented by Finance Minister P Chidambaram proposed a hike in import duty of set-top boxes from 5 per cent to 10 per cent, a move which gave a level-playing field to domestic manufacturers in terms of price compared to importers.
Industry body Consumer Electronics and Appliances Manufacturers Association (CEAMA) estimates the total demand for set-top box (STBs) would be about 60 million and turnover of overall STB segment would be around Rs 9,000 crore in 2014.

"We have seen huge growth in demand for STBs. In October, we increased production capacity of existing STB plant from 7 lakh to 10 lakh i.E. 1 million," Dhoot said.

The Central government has decided to digitise the cable television all over the country in a phased manner.
Foreign STB makers almost wiped out domestic players during phase I and II of cable TV digitalisation with around 95 per cent market share.
Out of total installation of about 55 million units, domestic players were able to sell about 10 million units of STB as on December, 2012.
In a pre-budget note shared with the Department of Electronics and Information Technology, CEAMA had said Indian players are losing business to imported STBs due to price difference arising out of the tax structure.

At basic production cost of Rs 1,012 per unit, the final price of STB made by Indian players lands in the market for Rs 1,296.27 compared to Rs 1,202.5 per unit price of imported STB, CEAMA said.