"We hope to break even with a Rs 225-crore sales turnover within the first year of operations in India," Konka India's chief operating officer (COO) Rajeev Puri said here on Wednesday.

Explaining the cost advantage in producing from China, he said production costs in Korea were 80 per cent more; 200 per cent more in Japan and a substantial 350 per cent more in Europe when compared to China.

"This gives Konka India a huge cost advantage while competing with Korean brands LG and Samsung, Japanese major Sony and European brands like Thomson in the Indian market," Puri said.

Konka India is a subsidiary of the Chinese consumer electronics giant Konka. While the parent company holds 51 per cent stake in Konka India, the rest is jointly held by television componentsmanufacturer Hotline and another Hong Kong-based firm Wittis.

Konka India will launch its complete range of products in India beginning with colour televisions, DVDs, VCDs and colour display monitors next month in the first phase.

To realise the sales turnover target in a fiercely competitive colour television market in particular, Konka India has signed a Rs 25-crore contract with the country's top-most advertising agency Hindustan Thomson Associates (HTA), Puri said.

"We have earmarked Rs 10 crore for advertising and promotion of the Konka brand within the first six months of our Indian operations," he added.

This would total Rs 25 crore by the end of first year and 10 per cent of the sales turnover every year thereafter, he said.

Denying that the company's turnover target for its first year of operations was ambitious, Puri said the target was based on a two-pronged strategy.

"Mainly, it is based upon the cost advantage Konka has over its other multinational rivals since all the products arecurrently being sourced from China," he said.

"Besides, we are launching many models at all possible price options to target a wide crosssection of consumers," he said.

The company is launching 30 models in the colour television category alone. "Take colour televisions for example. We will offer six models in the mass 21-inch segment to cater to every existing price point, which is more options than any other existing brand in India has provided the consumer with," Puri said.

At present, the price range for 21-inch CTVs is between Rs 12,000 and Rs 21,500 in the market and Puri said his company will have a model competing with every well-known brand.

"In the 14-inch segment also we will offer three models, while the 29-inch segment will again see six models at various price points," he said.

After the first phase of launches is over, next to hit the market would be Konka's home appliances - one product category every three months.

"Refrigerators, washing machines, microwaves, and air conditionerswill follow the consumer electronics product launch in July," Puri said.

The company's communication product range - cellular phones, cordless as well as corded phones - will be the next product category to hit the market, he said.

The company is offering a five-year warranty and unique features like the only six-inch TV besides a "canon woofer" quality sound system with large-screen televisions.

Konka China has earmarked Rs 200-crore investment in India, to be brought here in stages once the proposed manufacturing facility becomes operational here.

As per the agreement, Konka India is permitted to conduct only marketing and trade activities in India, with its entire product range being imported from China for the time being.

The company has firmed up plans to move the Foreign Investment Promotion Board for setting up a manufacturing base in India besides recasting the present board of directors with more representation from the parent company.

The game plan