1. Japanese consumer electronics brand Akai eyes Rs 2000 cr business by 2020

Japanese consumer electronics brand Akai eyes Rs 2000 cr business by 2020

"The brand still commands strong recall and customer satisfaction in terms of product quality. We are confident of doing well and targeting a turnover of Rs 2000 crore by 2020," Akai India director Anurag Sharma said.

By: | Kolkata | Updated: July 30, 2017 10:56 AM
Japanese consumer electronics brand Akai, relaunched last year after a gap of about three years, is aiming at Rs 2,000 crore topline by 2020 on the back of the strong brand recall among consumers. (Facebook/Akai India)

Japanese consumer electronics brand Akai, relaunched last year after a gap of about three years, is aiming at Rs 2,000 crore topline by 2020 on the back of the strong brand recall among consumers. “The brand still commands strong recall and customer satisfaction in terms of product quality. We are confident of doing well and targeting a turnover of Rs 2000 crore by 2020,” Akai India director Anurag Sharma told PTI. The company hopes to end the current fiscal (FY18′) with a turnover of Rs 400 to Rs 500 crore mainly from products like TVs, washing machine and air-conditioners. Hometech Digital, a Paras group firm received the brand licence for Akai for 10 years from 2016. Sharma was optimistic about the Goods and Services Tax (GST) rollout as it is expected to offer long term operational benefits and ease of doing business. “Despite consumer electronics being placed at 28 per cent tax bracket there is hardly any price change at the consumer level for the industry. In the long run operational synergies will only tend to ease prices,” he said. The company in the last eight to nine months of the re-launch has already built 1000 dealer networks in nine states of north, central and western India, Sharma said.

Akai will expand to south and east India by the end of the FY18. The core distribution strategy would remain offline but it has already partnered with e-tailer Snapdeal for online sales. However, despite its success digital will not be more than eight to 10 per cent in line with the industry standards. “We will engage other e-commerce partners in due course,” Sharma said. Currently, maxmium Akai products are being assembled from outsourced bases. On manufacturing strategy, Sharma said the company will go for own assembly line and manufacturing plant once it attains a critical mass after 2020.

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