BenQ to cash in on Siemens mobile buy

BenQ India will not be impacted by the global purchase of Siemens AG's mobile phone division by its Taiwanese parent.

In 2005, BenQ India will concentrate on doubling its market share from the current 3 per cent to six per cent.

Ish Bawa, marketing head of BenQ India, said, "On the global front, the acquisition of Siemens' mobile phone unit will transform BenQ into a $10 billion corporation and the fourth largest handset maker besides making it the largest mobile producer in Greater China. The transfer of Siemens technology will eventually help BenQ India to attain market leadership."

In the local market, on short term basis there will be little impact on marketing as Siemens over the last six months had no marketing and sales activities pertaining mobile handsets.

German's Siemens is selling its loss-making mobile phone unit to BenQ for an estimated 350 million euros ($429 million) . As part of the deal, Siemens will acquire 50 million euros worth of new BenQ shares. The deal is expected to be sealed in its fiscal fourth quarter of 2005.

BenQ will also get right to use Siemens brand and name for five years and will also get access to Siemens's R&D and customer base.

Ashish Bakshi, country manager, BenQ India, said, "the addition of Siemens division and brand to BenQ will help the company reach its leadership. With good distribution, technology, good product line, BenQ will eventually attain leadership position in India."

BenQ India, at present, enjoys a market share of three per cent with 2 lakh units sold in 2004. It has positioned GSM handsets for the youth and high -end segment.