Philips India Ltd has charted out an aggressive growth plan to achieve a Rs 2,000 crore turnover for its consumer electronics division by 2007.
Philips hopes to achieve this by keeping pace with the rapidly changing technology and a renewed focus on colour televisions, radio, home theatres and DVD systems.
D Shivakumar, executive director of Philips’ consumer electronics division, said that almost half of this turnover will be contributed by the CTV business alone.
“Technology is changing rapidly and we have to keep pace with that. CTVs will be a key growth driver since its penetration is below 20% and we are aiming to achieve a double-digit share in CTVs in the next three years,” Mr Shivakumar said.
Philips currently has a 6% marketshare in the 7.5 million units CTV market in the country. The consumer electronics division reported a Rs 650 crore turnover in 2003.
According to Mr Shivakumar, Philips has been growing at the rate of 36% against a flat consumer electronics segment in the last one-and-a-half years. Delhi, Mumbai, Kerala and Punjab have been showing the most impressive growth in CTVs, of late.
The company has identified real flat and large screen TVs as the fastest growing segment within CTVs.
In the audio division, Philips claims it has over 50% marketshare in the mini DVD segment and a 60% marketshare in radios. The company plans to focus on DVD music systems by announcing easy finance schemes to customers.
Philips has also decided to change its tagline “Let’s make things better” after about 10 years. According to Mr Shivakumar, Philips’ advertising agency DDB is working on a new tagline which will come into effect by end-2004.