Acer eyes 33 pc notebook market share in FY09

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New Delhi, May 25: Leading notebook maker Acer has aggressive plans for India as it eyes a 33 per cent market share in notebooks and expects revenues to touch Rs 1,800 crore by the end of the current fiscal. "We have a 13-14 per cent market share in the notebook segment which we plan to take to 33 per cent, while we expect the desktop segment share to grow to 25-30 per cent from the current 12 per cent by year-end," Acer India (Pvt) Ltd Chief Marketing Officer S Rajendran told the sources.

Acer also expects its revenues in the country to touch Rs 1,800 crore by fiscal year-end from Rs 1,200 crore last fiscal. It also expects similar growth in the desktop segment by the end of FY09. The company's verticals include notebooks (60 per cent), desktops (35 per cent), servers and display equipment like TFTs (five per cent) in the country. It operates in the America, Europe, China, Asia Pacific and Asia.

Acer also plans to strengthen its retail business as it increases its focus on the consumer segment. It has 250 outlets, with 107 being exclusive stores.
''It's a decision we took deliberately. There are already well-established players in the enterprise segment, but the consumer sections remain unexplored. With the government also laying emphasis, we believe this vertical of the business to yield results for the company,'' Acer India Managing Director W S Mukund said.

The company has an assembly and testing facility in Puducherry, while the parts are sourced from Taiwan and China. The notebooks are imported from the facilities in these countries.

The capacity of the unit stands at 1,800 desktops, while it imports about 20,000 notebooks and 40,000 display units every month.

The company is also looking at North India as a primary market. ''Our strongest market remains the southern region, followed by west and north. But with increasing penetration of computers, especially notebooks, we expect this to change,'' Mr Rajendran said.

Acer is also investing heavily in its promotion and advertising campaigns. ''We have extended our contract with our brand ambassador Hrithik for another year. We will put in three per cent of our anticipated Rs 1,800 crore this year towards brand promotion,'' Mr Mukund said.

It is also banking heavily to the e-governance programmes as an important channel for revenues. ''We have received contracts under the e-governance programmes from sectors like education, judiciary and police from various states and we expect this to continue and add to our business,'' he added.

He, however, did not disclose on the total worth of the contracts.

''India remains an important market for us, especially since it ranks in the top three in the Asian region,'' Mr Rajendran said.


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