Samsung unit in South, targets 70 pc jump

New Delhi, Aug 24: Consumer durables major Samsung India today said it is scouting locations in the South India to set up a new facility to manufacture its entire range of products, even as it targets a 70 per cent growth at Rs 140 crore by the year-end, in its Digital Media Business.

''We will make a formal announcement of Phase I of the commencement of this unit in September, which will manufacture and produce our entire range of products, including LCDs and Plasma TVs. We are looking at a phase-out plan in terms of production,'' Samsung India Deputy MD Ravinder Zutshi told reporters here.

Though he did not divulge any further details, he hinted at either Andhra Pradesh or Tamil Nadu as the probable destination for the new plant.

The new plant is touted to be in a Special Economic Zone (SEZ) in South India and will be much bigger that the Noida facility which currently produces 1.5 million units televisions and 1.5 million monitors annually.

''We have invested a total of 150 million dollars in the Noida plant till date,'' the Deputy MD said.

Construction is likely to begin in less than a year. The company has received the approval from the Board.

The company is eyeing a 30 per cent growth in its Audio Visual segment by the year-end. The Digital Media business, which is a new thrust area within the company's Audio Visual portfolio, includes Digital still cameras camcorders, MP3 and DVD players.

The 42-acre Noida plant has a 10,000 units per month capacity of LCDs and Plasma TVs, in which Samsung are market leaders.

An average of 5,000-6,000 units are manufactured every month.

However, with the festival season round the corner, and the ICC Champions Trophy scheduled to begin from October 6-November 5, production is all set to be spruced up.

The Noida plant manufactures televisions, monitors, refrigerators and washing machines.

''On an average, we sell 6,000 flat panels including Plasma and LCD television units each month, but in the months of Sept-Oct which will see a buzz of activity on account of various festivals and the champions trophy, we are expecting to sell around 8,000 TVs per month,'' Sales and Marketing Director Pradeep Tognatta said.

Samsung India is eyeing a 60 per cent growth in its sales during the festival period this year at Rs 150 crore from Rs 100 crore sold in the same period last year.

He said the company is aiming to sell one million units by the end of the year, and plans to up its market share in the LCD segment to 50 per cent by December, from the present 46.5 per cent.

The market size in India this year for CTVs is over 10 million units. Samsung plans to sell 1.8 million CTVs by the end of the year as against 1.5 million units it sold last year.

The company is also aggressively focussing on its exports this year, and is working on creating a hub for SAARC countries including Nepal, Sri Lanka and Bangladesh.

'' Out of the total Rs 6,300 crore worth sales we reported last year, our exports were only at a mere Rs 100 crore. This year, we are looking at a 60 per cent growth in our exports out of India to touch Rs 150 crore,'' Mr Zutshi said.

The advanced NV series i Digital Still cameras priced between Rs 8,990 and Rs 49,990 as well as the new HD ready Q7 series in Plasma TVs ranging between Rs 99,000 to Rs 7,00,000 were launched here today.

UNI