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Monday, July 12, 1999

Konka Electronics to keep clear of price war, says CEO Puri 

Tina Edwin  
New Delhi, July 11: Contrary to market expectations, Konka Electronics (India) Ltd, a subsidiary of Chinese consumer electronics major Konka, has no intention of initiating a price war in the Indian market. Konka Electronics (India) chief executive officer Rajeev Puri said, "We do not want to disturb the market. There will be nothing Chinese about our prices."

He said: "Our strategy would be to introduce digital technology products at affordable prices." In China, a 21 inch colour television retails at approximately $170 as against $325 in India. Konka said it wants to expand the electronics and appliance market here, and therefore would not follow suit of brands such as Akai which entered the Indian market with very aggressive price positioning and special schemes for the consumers, he added. "We will match the prevailing prices in the market with better products offerings." The consumer electronics industry as well as the dealers are expecting Konka to breach the price barrier in the televisions marketwhen the company begins the rollout of the products later this month.

Countering market expectations, Puri said the cheapest 14 inch colour television from the Konka stable would be priced at Rs 6,990. The flat TVs, on the other hand, would be priced in the region of Rs 57,000 like Sony's Wega and LG Electronics Flatron, he added. The company will have models in super premium and premium segments besides the popular and economy segment, Puri disclosed. Konka is scheduled to begin the roll out of its products officially from July 28. The product display at the dealer counters is expected to begin a week in advance.

Konka India is three-way joint venture between Chinese consumer electronics giant Konka, Hong Kong based Wittis and Delhi-based picture tube manufacturer Hotline. Konka holds 51 per cent stake in the joint venture, while the Delhi-based company holds 25 per cent and Wittis has 24 per cent stake in the company.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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