TV cos rush to grab Rs 5,600-cr biz

Nearly all of India's consumer durable companies, including LG Electronics, Samsung India, Videocon Industries, Mirc Electronics and Haier Appliances India, have made presentations to Tamil Nadu to grab the Rs 5,600-crore contract from the government to supply 8 million colour TV sets.
Newly elected chief minister Kalaignar Muthuvel Karunanidhi has announced that, beginning September 15 this year, 8 million 14-inch colour televisions would be distributed free of cost to those families in the state which do not own a CTV . TV companies see lucrative business in the contract since all companies together sold only 10.5 million CTVs in the country last fiscal.

The TN government, though, is still non-commital on how it will raise the money required to fund the free TV programme. A standard 14-inch TV set costs Rs 7,000, adding up to Rs 5,600 crore for 8 million sets.

During the party's election campaign, senior leaders of DMK had hinted at setting up a TV assembling unit at Nanguneri SEZ in southern Tamil Nadu where these CTVs would be assembled. It was also said that CTVs would be sourced from China if necessary. Dhananjay Chaturvedi, head - institutions and modern trade from LG Electronics India confirmed to FE that he had met Mr Karunanidhi recently and held discussions regarding the number of CTV units to be assembled at the Nanguneri SEZ. However, most other manufacturers contacted by FE denied they made any presentations to the TN government. The TN government has also decided to call for global tenders for purchase of 14-inch colour television sets. A committee of legislators will decide on the tenders and monitor the implementation of the scheme, which would be done in phases starting September 15. Industry observers say that the government is considering giving away 14-inch TVs since they are the least costly among CTVs, and has a very low demand among CTV sets. All major CTV makers make 14-inch TVs, and this would be an ideal opportunity for them to sell more volumes.

From: http://www.financialexpress.com/fe_full_story.php?content_id=129069

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