LCD, plasma TVs post significant sales
The year saw significant action in the form of new entrants in the domestic consumer electronics market, overseas bids by Indian players and move for setting up of new facilities.
Buoyed by festive sales and overall momentum in demand, the consumer electronics sector maintained a steady growth rate in the current year.
According to estimates, the CTV industry is expected to end 2006 with sales of 11.5 million units, a growth of 12-15 per cent over the previous year. But more significantly, much of this growth is driven by the higher end of the segment.
According to the Consumer Electronics and Television Manufacturers Association , LCD TVs are expected to end the year with sales of 1.5 lakh units and plasma TVs 50,000 units.
In comparison, total sales of LCD and plasma TVs were estimated at 50,000 units in 2005. This segment is expected to maintain a growth rate of 75-100 per cent next year as well.
Further, with the ICC World Cup scheduled for next year, the industry expects CTVs' pace of growth to only increase in 2007.
Increase in sales of washing machines, air-conditioners, microwave ovens and DVD players too helped the sector maintain a positive growth rate in the current year.
The first 10 months of the year saw all consumer electronics products clock about 10 per cent growth with high-end categories such as flat panel TVs, frost-free refrigerators, fully-automatic washing machines and split air-conditioners leading the growth.
The year also saw significant action in the form of new entrants in the domestic consumer electronics market, overseas bids by Indian players as well as announcements for setting up of new facilities.
Home-grown player Videocon grew more aggressive in its bid to expand globally and reached an agreement to acquire South Korea's Daewoo Electronics for about $729 million.
The company is learnt to be interested in filing a bid for LG Philips Displays as well.
On the investment front, Korean major Samsung announced that it would invest $100 million to set up a facility in Tamil Nadu to make it a global manufacturing hub.
Not to be left behind, Chinese giant TCL also announced that it was planning to set up two manufacturing units in India with a total annual capacity exceeding one million sets next year.
Meanwhile, the BPL Group and Japanese electronics major Sanyo Electric Company Ltd formally started their 50:50 joint venture in the year. Sanyo has also planned to use India as its sourcing base.