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April 18, 2001
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Money > Business Headlines > Report April 18, 2001 |
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No colour on the tube, CTV makers take 'hits'Reeba Zachariah Severe competition, price wars and static demand in the colour televisions market is forcing manufacturers to cut down production. In addition, companies are also encouraging employees to go on leave to ensure that production takes a "hit." G Sunder, executive vice-president of Mirc Electronics, makers of Onida brand of televisions, said, "We have undertaken a corrective measure by cutting the production by 30 per cent." In March, Mirc reduced manufacturing of CTV units by 20,000 units at its 60,000-units plant. The company plans to maintain production at 45,000 units for the period April to June. To facilitate the process, Mirc has also encouraged employees to go on leave. "Employee absenteeism will be highest during this period," Sunder added. Similar measures are also being taken by a host of other Indian companies as well as multinationals. A Samsung India Electronics spokesperson said, "The company has undertaken a planned production cut whereby we manufacture as per orders taken by dealers. So, the production figures varies month to month." Samsung manufactures around 600,000 CTVs annually at its Noida facility. Senior officials at LG Electronics said, "Proper production planning is one way of not piling inventories at the dealers end." LG, which manufactures around 2,000 units a day has curtailed production to 1,000 units. The Rs 60 billion CTV industry is currently registering negative growth. According to Cetma figures, for the three months ended March 31, 2001, CTV sales have dipped to 960,000, compared with 1.2 million sales registered in the corresponding quarter last year. There is some sight of respite in, however, in the premium-end of the market. Most multinationals have been importing top-end CTV models, and despite declining demand, may actually imports. Rajeev Karwal, senior vice president, Philips India said: "The premium end is the only sector that is growing. It is likely that companies will increase imports in that segment." Powered by YOU MAY ALSO WANT TO READ:
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