Belkin, a California-based provider of interconnectivity solutions across computing and consumer electronic devices, is looking at going in for strategic outsourcing to India once the goods and services tax (GST) is rolled out, according to Mohit Anand, managing director (India subcontinent).
“We have already tested the waters here in early 2011 by sourcing products like laptop bags and hubs from local players and the results were encouraging. However, we are awaiting the implementation of the GST to set up a local warehouse and then go in for strategic outsourcing,” he told mediapersons here on Thursday.
According to Anand, the company cannot buy anything now in the local currency and has to convert the pricing from the US dollar to rupee, courtesy the absence of GST.
Replying to a query on whether the company’s product pricing had gone up due to the depreciation of rupee against the dollar, he said the company was initiating measures like lowering its selling price to retailers and running consumer promotion campaigns to mitigate the risk of rupee depreciation. “It is a tough situation. We have to increase the prices ... we have to live with it,” he said.
Belkin, which entered the Indian market in 2009, is seeing an opportunity of $574 million (close to Rs 3,000 crore) across networking, surge, IT peripherals and mobility segments, which according to Anand is set to touch $1.5 billion by 2015.
The company recorded revenues of Rs 150 crore in the financial year ended November 2011 as compared with Rs 95 crore in 2010 in the Indian subcontinent. “We are aspiring to become a Rs 1,000-crore company in India by 2015,” he said.
To accomplish its growth targets and to widen its product portfolio, the company on Thursday launched its wired and wireless keyboards and mouse range, besides a combination package with prices ranging from Rs 429 to Rs 2,629.
“We have a wide range of laptop and desktop products, including hubs and laptop cooling and charging solutions, in the IT peripheral category. But the circle has some gaps. The launch of these new products will now complete that circle,” Anand said.
