Zenith to add 550 outlets

Zenith Computers is planning to expand its chain of retail stores (Zenith PC World outlets) from the current 450 to 1,000 in over 240 cities across the country by 2006-end.

It also has plans to introduce the first-of-its-kind 'Digital Home Experience' outlet in Mumbai by the first week of June 2006 to give consumers "a feel of the digital home".

The 'Digital Home Experience' will comprise a high-definition TV (HDTV) "" either plasma or LCD (liquid crystal display), state-of-the-art speakers, an aesthetically designed (cylindrical) computer cabinet, an amplifier, sub-woofers and a wireless keyboard and mouse.

Raj Saraf, CMD, Zenith Computers, said, "We plan to set up at least 30 such outlets in a year. Our pricing is such that a customer will get a Zenith PC and speakers bundled with LCD/ plasma screen and other gadgets."

Only a couple of months ago, the nearly Rs 300-crore Indian PC manufacturer made a foray into LCD monitors. The company plans to manufacture three lakh LCDs a year at its Goa plant from September this year.

"We see a future in LCD manufacturing and expect at least a 100 per cent growth here," Saraf said. LCDs are expected to account for 60 per cent of the company's revenues in two years.

LCDs for laptops, mobile phones, signages, public announcement systems and televisions will be sold as standalone products.

The current market size of LCD monitors in India is around three lakh units and is expected to touch 17 lakh by 2008. According to industry estimates, the LCD market share was 14 per cent during 2005 and is likely to grow to 22 per cent by 2008 and replace the traditional CRT monitors.

Focusing on the high-end, high-margin laptop business "" in the domestic as well as international market, the company is expecting export sales of Rs 100 crore during this financial year, up from Rs 40 crore last year.

"Our focus on notebooks has paid off," Saraf said, adding that he is looking at a 50 per cent growth this year.

The company has manufacturing facilities in Goa and exports out of the Kochi special economic zone. In 2004-05, the company sold 30,000 notebooks, indicating a whopping sales growth of 315 per cent during the year. Zenith expects to sell 60,000 notebooks by 2006.

However, Saraf rues the fact that the ratio of laptops to desktops remains a dismal 3 per cent (worldwide 30:70). Currently, Zenith's laptops are being sold in Saudi Arabia, Dubai, Yemen and, through distributors, in Jordan in countries such as Israel, Iraq and Costa Rica as well.

Incidentally, it was only recently that Zenith Computers was rated the second most preferred brand in an IDC Audit of 356 CIOs conducted by Dataquest.