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Thursday, March 25, 1999

Samsung to use India as marketing hub for Saarc region 

Our Bureau  
BANGALORE, Mar 24: Samsung India Electronics Ltd, the joint venture subsidiary of the US$17 billion Samsung Electronics Co Ltd of South Korea, is planning to make India the hub for the company's marketing activities in the Saarc region. Having a set an export target of Rs 135 crore, the company would be launching its CTVs in Bangladesh and Sri Lanka during the calendar year. Currently these products are available through imports from the parent company.

On Tuesday, Samsung unveiled a three-pronged strategy here, to become a Rs 2,500-crore home appliances company by the year 2001. As per the Vision 2001 programme, the company would be unleashing an array of consumer durable items in the domestic market.

Apart from giving boost to exports, the company would also be increasing its presence in rural markets in the country. Samsung India is planning to beef up its dealer network to 2,000 shops from the existing 1,600 retail outlets across the country.

To start with, the company would launch it products inOrissa and Patna next month. ``The company is also establishing its branch offices in these areas. With this the number of branch offices will go up to 18. Currently we have regional offices in Bangalore (South), Delhi (North) and Mumbai (West), in addition to our head office in Delhi,'' Samsung India Electronics vice-president (sales) Ravinder Zutshi said.

Zutshi told The Financial Express that the company would be investing about $30 million for enhancing its production capacities in Noida over a period of three years. The company has already injected around $30 million on this account.

``A part of the fresh funds will be raised from domestic banks and financial institutions while the remaining will be injected by the parent company. We are expanding the existing capacity of the colour television production unit. The company is also proposing to put up a new unit for manufacturing colour monitors in the country,'' he added.

Regarding rural marketing, a new initiative by the company, he said:``The company is launching specially prepared products suitable for the rural masses of the country. Plans are afoot to launch products like semi-automatic washing machines, direct cool refrigerators and new models of CTVs,'' Zutshi added.

As part of the Vision 2001 programme, the company would be introducing mobile vans in major metros offering service to its customers, while a group of senior marketing professionals would contact 10 Samsung customers a day in order to clear their doubts.

Samsung India, which achieved a turnover of Rs 540 crore in 1998, is targeting a sales revenue of Rs 900 crore during the current calendar year, based on the introduction of the new products and enhanced customer pull through special World Cup advertising campaigns. Products like airconditioners and monitors will be launched soon.

It has initiated a second phase of management innovation -- Challenge 2000 -- campaign for production and sales this year. The aim of the Challenge 2000 programme is a speedy and flexibleproduction system to meet the changing needs of the customer.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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