BPL targets Rs 100-crore sales from audio business this fiscal

Kavitha Vivek & KP Sethunath

Bangalore, Nov 19: BPL Ltd is all set for an overdrive with a re-focussed plan for the audio business of the Group. The audio business for BPL is expected to bring in Rs 100 crore worth of business (14 per cent market share of the organised segment) this fiscal and close to Rs 125 crore and a 17 per cent market share once the new strategy is in place.

The company is also set aggressively tap the ‘belly of the market’ segment in the micro and mini-component systems (with VCD player) market, which will see BPL playing in the Rs 6,000-12,000 price point.
This strategy is aimed at directly taking on its competitors like Sony which is aggressive in price points of Rs 20,000 and above and Philips at about Rs 15,000-18,000.

The consumer electronics major is also working out modalities to promote its VCD and DVD players and offer it as 5.1 configuration home theatre systems which will be offered at affordable price points.

BPL currently is present in all categories - HPS, monos, stereos, micro system, mini-system, VCD players, car audio and car speakers offering a total of 36 models. Incidentally, the company is also the largest manufacturer of standalone VCD players in the organised sector in India.

The overall audio market in India is pegged at Rs 1,000 crores of which music systems (CD/VCD) represent 45 per cent by value, others (HPS/monos/stereos) are 55 by value with an overall industry growth of 10 per cent.

Speaking to The Financial Express, BPL Ltd chairman and managing director Ajit Nambiar said the audio segment was now perceived as a life style product dominated segment. BPL, therefore, was looking at offering the products which offered a significant enhanced audio and visual entertainment value for customers, Mr Nambiar said.

‘‘Audio products are no longer just for listening to music but are now being considered as components for enhanced visual entertainment. This is clearly evident from the growing popularity and the growth in VCD, DVD segment. Also the belly of the market’ segment is a key growth area in which BPL expects to gain significant leadership position,” he added.

As per the company’s streamlined strategy, VCD players will be introduced in three categories/forms - basic stand alone VCDs, stand alone VCD with in-built amplifier and VCD players promoted as 5.1 home theatre at various price points. BPL’s current sales in this category is currently about 3,500 units a month which is expected to go up to 8,000-10,000 units a month with this new strategy.
Similarly DVD players will be projected at various price points in 5.1 configuration.