As Videocon Industries struggles with its working capital necessities and provide chain, Indian manufacturers within the LCD and flat panel tv section are attempting to garner further share and occupy its place within the ₹25,000-crore section.
Other than the Korean and Japanese gamers, of late, aggressive depth has elevated amongst Indian manufacturers of LED televisions with erstwhile cell phone gamers like Intel and Micromax pitting themselves towards stalwarts like Videocon within the section.
“Intex has grow to be the primary participant to dominate the LED tv section in quantity phrases, whereas Videocon is simply marginally forward of us in worth phrases. Our market share has been constantly growing, whereas Videocon’s has been lowering,” says Jayesh Parekh, Enterprise Head, Client Durables, Intex.
Catering to the mass section, Intex has bought six lakh televisions final 12 months and is searching for a 5 per cent market share this 12 months.
Value warriors Micromax too, which entered the LED tv section about three years again, intends to grow to be the highest 5 manufacturers within the section with an aggressive on-line technique.
However it be could a brief second of glory for such worth warriors as they construct their manufacturers on volumes within the Indian market.
“The brand new worth warriors are searching for short-term beneficial properties and these shares can’t be everlasting.
“There was a vacuum created with Videocon dealing with working capital constraints however it could be established Indian manufacturers who will maintain on this aggressive flat panel market.
“Onida has a model legacy of 30 years and whereas worth warriors like Intex will proceed to play a job, it might by no means match our high quality and model legacy in televisions,’’ says Sunil Shankar, Enterprise Head, LED Panels, Mirc Electronics, the makers of Onida televisions.
New rivals As for Videocon, it has been dealing with momentary hiccups on this manufacturing and provide chain and isn’t perturbed by its new rivals.
CM Singh, Advisor and former COO, Videocon Industries, stated: “Firms like Intex are mainly merchants who proceed to import from China primarily and it’s for a brief interval that our shares have dipped resulting from supply-based points.
“There has at all times been an enormous hole between us and the closest Indian model of LED televisions and Videocon is by far the most important Indian LED tv model within the nation.’’
Different Indian manufacturers like Mitashi, which entered the LED tv section a couple of decade in the past, is making an attempt to construct a premium model within the LED tv section.
“Intex is making an attempt to get share primarily based on its disruptive pricing methods within the mass market, however can not beat us on high quality.
“We’ve got now dropped sourcing from China and are depending on Indian firms like Dixon Applied sciences for our LED televisions,’’ says Rakesh Dugar, CMD, Mitashi.
Whereas the Indian manufacturers proceed to compete with one another in addition to Korean and Japanese MNCs, segments like flat panel televisions are on the verge of getting commoditised.
As business veteran YV Verma, observes, “Flat panel televisions have grow to be a commodity since everybody now has the identical product and expertise. Indian gamers have to construct their manufacturers and have distinguishing options to outlive on this section’’.