TCL India Holdings, a wholly owned subsidiary of the $6.5-billion Chinese TV manufacturing major TCL group, plans to introduce cellphones in India by the first-half of 2009 to compete with Nokia, Samsung, LG, HTC and other brands.

While Warren Wang, TCL India’s managing director, declined to divulge the pricing details, the group’s cellphones are priced between $100 and $400 (around Rs 4,500 and Rs 18,000). The move is part of TCL’s focus on emerging markets, including India, to increase their market share and revenue.

India adds around 8-9 million mobile phone subscribers every month. The Southeast Asian nation is the fastest growing market in the world and is the second-largest mobile market after China.

Colour TVs account for around 80 per cent of TCL India’s revenue. Approximately 10-12 per cent of its revenues come from air-conditioners, another 5 per cent from washing machines, and the rest from DVDs. The company is strong in the Eastern (West Bengal) and Southern (Tamil Nadu) markets, which accounted for around 40 per cent of its total revenue of around Rs 230 crore in CY07.

For the past four years, TCL India’s focus has been on colour TVs. Around 12-13 million colour TVs are sold in India every year. However, Cathode Ray Tube (CRT) TVs account for almost 95 per cent of sales in India even as the CRT market is shrinking worldwide (US-around 10-20 per cent, Europe-around 20 per cent, and China-around 50 per cent).

Wang’s focus is now shifting to liquid crystal display (LCD) TVs. Currently, TCL India has a 2-3 per cent market share in the CRT segment. LG and Videocon dominate the market with around 25 per cent market share each, while Samsung and Onida follow with around 20 per cent and 10 per cent market share, respectively. Sony has shifted its total focus on LCDs.

For the first-half of CY08, TCL India sold around 200,000 colour TVs (around 95 per cent comprised CRTs). “This percentage will decrease as we move along. Worldwide, too, the market for CRTs is shrinking which is why we have had to delay our manufacturing plans in India,” says Wang, adding: “We have already tied up with two manufacturers in China and plan to set up an LCD module factory soon. With these alliances, TCL will have an edge in the LCD industry.”

Meanwhile, Wang admits that the slowdown is affecting business sentiments. TCL India sold 300,000 colour TVs in CY07. In CY08, the company is targeting a sale of around 360,000 units. It has already sold 200,000 units and the second-half is generally considered better due to festivals like Ganpati, Durga Pooja, Diwali and Christmas. However, the figures are telling a the dip in growth.

Source:business-standard