India: color picture tube makers boost capacity

Indian color picture tube (CPT) manufacturers are boosting capacity in response to domestic and export demand. The domestic market alone for CPT is growing at about 15% and the momentum is expected to…

Indian color picture tube (CPT) manufacturers are boosting capacity in response to domestic and export demand. The domestic market alone for CPT is growing at about 15% and the momentum is expected to be maintained over the next few years. In a bid to meet future demand, major CPT manufacturers Samtel Color and Hotline Group have outlined investments for higher capacity. While Samtel plans to expand its capacity of around 6 million to more than 10 million by the end of the current fiscal year, the Hotline Group also expects to have a CPT capacity of 10 million by the end of 2005 compared with 6 million at present. “We are in the process of setting up two lines for CPTs this year at a cost of about INR 2. 6 billion. This includes a line for 29-inch super flat pictures tubes. We will be only ones to make this particular CPT in the country,” said Ravi Saxena, GM (Finance), Samtel Color Ltd. Samtel expects demand for the 29-inch flat CTV segment, which has a market share of about 4%, to grow significantly in the near future. At present, television manufacturers are importing picture tubes to manufacture 29-inch televisions. “Another focus segment for us is the 21-inch flat segment, which accounts for about 25% of all CTVs sold in the market. We have a line for 21-inch flat CTVs and are expanding that as well,” Mr Saxena said. In 2004, the domestic CPT market was estimated at 10 million units and is expected to reach 15 million in the next few years. With a number of large export orders in hand, Samtel is also confident about exports and expects around 30% of its production to cater to those markets. Mr D.C. Mathur, Joint Managing Director Hotline Group said the company has already made substantial investments to expand capacity. “We will be spending an additional INR 500-600 million towards setting up a new line,” he said.