Mumbai : The Rs 1,668 crore audio systems major Philips India Ltd hasreduced the price of its range of 21-inch colour television (CTV) model byRs 600, this month.Says Philips India Ltd senior vice president (consumer electronics) MrRajeev Karwal: "Since the launch of Philips 21-inch model in November 2000, the product was available to customers at Rs13,300 targeted at the premium end of the market. After the price reduction,it is now available at Rs 12,700."
Explains Mr Karwal: "The company has reduced the prices basically to providecustomers a qualitative product with a correct value-for-money perception.In addition, the company intends to spur volumes of Philips 21PT1532 modelthis year."
Says Mirc Electronics Ltd chief operating officer Mr GS Sundar: "The companydoes not believe in price reduction strategy at present because first, theproducts are targeted at the premium end of the market; and secondly, evenif the company intends to reduce prices of its range of CTVs in a bid tospur volumes, the company would incur losses due to the low margins."Adds Mr Sundar: "It all depends upon the customs and excise duties levied bythe government on colour televisions, colour picture tubes and colour glassmanufacturers in the Union Budget 2001."
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
