Samtel Sees Big Picture, To Pump In Rs 100 Crore

New Delhi, Nov 16: | Updated: Nov 17 2003, 05:30am hrs
After setting up the first super flat picture tube manufacturing facility in India, Samtel chairman Satish Kaura is now preparing to ride the next big wave in the Indian colour TV market the high-end big size picture tubes of 29 and 34.

The company plans to set up fresh facility for the manufacture of 29 and 34 picture tubes (flat and conventional) in the country, the demand for which is fast picking up.

The new plant will involve fresh investments of around Rs 100 crore and is expected to be up and running in around 15 months.

Satish Kaura foresees the next big growth area in big size picture tubes as the trend in the country is fast catching up with developed markets. This is happening so since the colour TVs are fast coming within the reach of lots of people and the volumes are bound to pick up, he said.

Although the company has capacity for flat picture tubes, the manufacture of big sized picture tubes has to be done separately and a new line has to be set up for it. We intend to invest less than Rs 100 crore for the new facility, Mr Kaura said.

We have already stabilised our super flat 21 picture tube plant and will be able to replace more than 90 per cent of the import market for flat picture tubes, Mr Kaura added.

So by the time the demand for big screens picks up in India, Samtel will be ready with its facility to supply to colour TV manufacturers, Mr Kaura said.

In the domestic market, the demand for flat picture tubes is fast picking up. From 0.2 million in 2001-02, the flat CTV sales went up to 0.6 million and in the first seven months of the current financial year, the sales have already gone up to 0.84 million out of the total CTV demand of 5 million.

Samtel Colour is already supplying 21 super flat picture tubes to Videocon, Thompson, LG Onida and BPL and approval is waited from Philips and Samsung. Among smaller players, Samtel is supplying to T Series, Crown, Oscar, Texla, Beltek and Salora.

Mr Kaura says the demand for 21 super flat has grown much faster than anticipated.