Samtel India to expand PC monitor capacity

Sanjay Sardana

New Delhi, June 3: Samtel India, part of the Rs 1,000-crore Samtel group, has decided to expand its personal computer (PC) monitor capacity by setting up a greenfield manufacturing facility with 1 million units capacity in Pondicherry. The plant, to be operational in the second half of 2002, will entail an investment of around $8 million (Rs 38 crore).

Samtel India’s multimedia division, which is engaged in the manufacture of PC monitors, has a current capacity of around 5 lakh monitors per annum.

The company is also exploring the export market for monitors and is on the look-out for a strategic partner in the form of a distribution companies.

“We hope to export close to 20 per cent of our production by the year 2003-04. By then our total sales is expected to be around 1 million monitors,” company AGM (commercial) MS Kohli told The Financial Express.

Samtel is also expanding its service centres from 26 to around 135 by the middle of next year.
“We are looking to outsource the service centres on a franchise basis, which will provide efficiency to our customers,” Mr Kohli said.

Samtel India proposes to alter its sales mix in favour of 15 inch flat monitors. Currently, 15 inch monitors contribute around 45 per cent, 14 inch around 35 per cent to 40 per cent and balance 17 inch monitors to total sales of PC monitors.

This year, 15 inch monitors will contribute around 60 per cent, 17 inch monitors around 25 per cent and 14 inch monitors will contribute the balance 15 per cent, Mr Kohli added.

“Our market share over the past three years has moved up from mere 5 per cent to over 12 per cent, which is further expected to rise to 19 per cent this year,” he said.

“On the export front, we will like to leverage our existing network in the European and Far Eastern market, which we have developed by exporting CTV picture tubes (CPTs) over the past 15 years. In case we tie-up with a distribution company, the exports may or may not be under the Samtel brand. The idea now is of building competencies for exports,” Mr Kohli added.