Germany's Sennheiser enters India, eyes 7pc market share

New Delhi, Feb 18 (UNI) German audio equipment major Sennheiser Electronic has announced its entry in India with a target of capturing atleast a seven per cent share of the Rs 285-crore- audio market in the first year.

The manufacturer of microphones, headphones and wireless transmission products has formed a 100 per cent subsidiary, Sennheiser Electronics India Pvt Ltd, for the purpose.

The new company will be led by Ms Sharmila Sahai as General Manager who was roped in from Philips India some time back.

''The size of the Indian audio industry is estimated at Rs 285 crore of which we hope to capture seven per cent within the first year of our entry,'' Ms Sahai said.

The current key target markets include Mumbai, Delhi, Bangalore, Chennai and Hyderabad, she said adding that the company is targeting a market share of 28 per cent by 2011.

In the first year, the company plans to focus on establishing the brand in the Indian market, building all spheres of the business, and extending the distributor network across India.

The next phase will encompass driving growth and profitability and expanding the team, including the set-up of additional offices and after-sales service centres.

Later, it will move into a more evolved phase of driving market share and broadening the product range in the country, she added.

Out of the total Rs 285 crore, about Rs 100 crore is in the professional equipment market while the rest is in the consumer market which includes products used by the call centres.

About 60 per cent of the total market is believed to be under the grey market.

Sennheiser was earlier serving the Indian market through its sole Asian subsidiary based in Singapore.

The company also distributes products under other brands such as Neumann.

UNI