Samsung to revamp audio product line

With the demand for flat panel TVs, the key driver of growth for its audio systems business, on the rise, digital technology leader Samsung India Electronics Limited is revamping its audio product line.

"Currently around 30 per cent of our audio systems go as a combo (home theatres) along with our panel TVs. The demand for flat panel TVs has seen an increase since last year. In keeping with this trend, we are currently revamping our audio product line," Pradeep Tognatta director (sales - consumer electronics), told Business Standard, while refusing to divulge further details.

Stating that affordability and easy availability of finance are driving more and more consumers towards this segment, he said the domestic flat panel TV market this year would be around 4 lakh units, and was expected to touch 3 million units by 2009.

"We intend to make good on this opportunity and capture a 50 per cent pie of the flat panel TV market in the country this year," he said.

The company, which currently enjoys a leadership position in the domestic flat panel TV segment with a market share of 46.2 per cent, is targeting to sell around 2 lakh flat panel TVs this year, as against 75,000 units last year.

Tognatta said the global demand for plasma TVs would be 15.5 million units, 80 million for panel TVs and 116 million for tube this year. "However, by 2010, panel TVs would lead the league with 152 million units, while the tube TVs are expected to come down to 60.5 million," he said.

According to him, the organised split air-conditioners market too is increasing year-on-year, and is expected to touch 1.5 million units this year as against 1 million in 2006. "This year, we plan to sell around 3.75 lakh units, both split and window in a 50:50 ratio, as against 2.5 lakh last year," he added.

Besides planning to tie up with more large retail format chains such as Kuwait-based Kirby, the company is in the process of setting up more Samsung Brand Shops across the country this year.

"We already held talks with Kirby, which is expected to open its first store in Noida next month. With regard to our Brand Shop expansion, we are planning to take the number to 135 this year, from the current 92," he said.