CALCUTTA, January 30: Samsung India Electronics Ltd is targeting a turnover of Rs 650 crore from its operations in 1998, its managing director BM Park told reporters here on Thursday on the occasion of the launch of Samsung's products in the east.The company registered sales of Rs 400 crore in 1997.
"Our operations in India started in late 1995. In 1996 our turnover was a mere Rs 156 crore but it jumped to Rs 400 crore in 1997. So we are confident of reaching Rs 650 crore this year," Park said.
Samsung has entered the eastern sector after gradually launching its products in the other parts of the country. Ravinder Zutshi, vice president (sales), said the company does not want to rush with the launchings.
"We first launched our product in northern India. From there we moved on to south and then to west. It took us about two years. We are slow because we want to consolidate our position in one market before moving onto another," Zuthsi told The Financial Express. By April, Samsung will open itsoffices in Bhubaneswar and Patna.
The products launched are 14 models of colour televisions in the 14 inch to 32 inch size range, the 29 inch model, six models of frost free refrigerators in the 320 litre to 670 litre capacity range, seven compact disc audio systems, four fully automatic washing machine models with over 6kg capacity, three microwave oven models and a twin video compact disc changer.
The company, a joint venture promoted by Samsung of Korea and some of the Indian financial institutions, would invest Rs 260 crore by AD 2000 to set up additional manufacturing and marketing facilities in the country.
Park said 25 per cent of the capital would be financed by equity and the rest either through foreign capital or long-term debt. The Indian unit of Samsung has already invested $25 million in the country, he said.
Samsung India will also perform as an export base for its operations in the neighbouring countries for colour television sets and refrigerators.
Park said the parent company iscommitted to Samsung India as India is among the top three countries in its list of emerging markets, the other two being China and the Commonwealth of Independent States. The managing director said the company is enjoying a market share of 8.5 per cent in the colour television market and it is expected to go up to 12 per cent in 1998. He Samsung India has identified the semi-urban market as its target group for which the company would market 14 inch and 20 inch colour television sets. In the future, the company plans to introduce its other product ranges such as microwave ovens, more models of washing machines and room and split air-conditioners.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
