Mobile handset maker Micromax announced its foray into the television segment with the launch of a range of LED TVs priced between Rs. 15,990 and Rs. 1,29,990.
The company expects a revenue of Rs. 225 crore from this the TV segment in this fiscal.
"Televisions is a natural progression. As consumers evolve, they want their devices and experience to be smart and personal. We aim to partner the growing aspirations of the digital consumers at all levels," says, Rajesh Agarwal, Micromax Managing Director and Co-founder .
The company is targeting 5-8 percent of revenues (Rs. 140-225 crore) this fiscal from the television segment, he added.
The LED TVs will be initially launched in nine states like Delhi, Haryana, Maharashtra, Karnataka and Rajasthan across 24-inch to 55-inch range. The televisions will be priced between Rs. 15,990 and Rs. 1,29,990.
Micromax, which sells mobile phones and tablet PCs in India, SAARC and the Middle East countries, is aiming to grow overall revenues to Rs 2,800 crore for year ending March 2013.
"In the next one year, we are looking at sales of one lakh units (TVs)...In the next two years, the aim would be to increase the TV segment contribution to 20 percent of the revenues," Agarwal said.
He added that though the overall television market is growing at 15-16 percent, the LED TV segment is witnessing 100 percent. LED and LCD TVs comprise 35 percent of the 17-18 million units market and is a fast growing segment.
The company is targetting 8-10 percent market share of the LED TV market.
Micromax will assemble the LEDs at its new facility in Rudrapur, Uttarakhand. It is investing Rs. 100 crore in the plant.
"We have set up an assembly line in Rudrapur, which has a capacity of 2,000 units. This will eventually be ramped up to 5,000 units. The facility will also manufacture tablet PCs and mobile accessories," he said.
A major chunk of the investment has already gone in and in the next 2-3 years, a total of Rs 100 crore would be invested.
For distribution and after sales, the company will use its existing channels. Its also in the process of setting up its own service centres.
Micromax is launching its home theatre range and SMART Stick, using which users can connect to the Internet through their television sets.
"SMART Stick will be priced at Rs. 5000 and will connect to any television with an HDMI port. Its like a dongle and will help users access Internet on their TVs," Micromax Director Mukesh Gupta said.
Amkette and Akai have similar devices available in the market.