Techcom bets on consumer electronics sales for growth

Computer peripherals and consumer electronics company Techcom expects sales of consumer electronics and its newly lunched mobile phone would drive revenue growth in 2011-12.

“In terms of volumes, computer peripherals comprise major part of our sales, but in terms of revenue, consumer electronics is ahead”, said Sandeep Kedia, director of the company.

In 2011-12, the company expects its net sales revenue to touch Rs. 250 crores, against Rs. 157 crores achieved in 2011-12.

Already known as a major player in computer key boards, mouse, web cameras and headphones, the New Delhi-based company last year launched 18 inch LCD TV monitors eyeing at middle income consumers in the country.

The company has 14 branches across the country. Abroad, it is doing business in 30 countries, mainly Southeast Asia, former Soviet bloc nations and a few African countries.

However, the company has very low brand image compared with other consumer electronic makers, who spend heavily on marketing and promotion.

Admitting this fact, Kedia said, the company has plans to increase its advertising spend.

“We will be spending about Rs.100 crores in three years time in advertising. It would also include market promotion and public relation,” he said.

To grab a pie in fast growing mobile handset market in India, the company recently entered into selling of GSM handsets with seven low-cost models. It is planning to roll out two more models next week.

Techcom is a late entrant in mobile handset business. Its competitors in computer peripherals, such as Intex and iball, have already launched their handsets a year ago.

But Kedia is not perturbed. “India is such a fast growing market that even a late entrant can become major player if it launches the products at right time and right opportunity. We see our mobile handset market to have 2-3 per cent market share by the end of 2011-12,” he said.