Mobile handset maker Micromax on Tuesday announced its foray into the television segment with the launch of a range of LED TVs priced between Rs 15,990 and Rs 129,990.
The company expects a revenue of Rs 225 (Rs 2.25 billion) crore from the TV segment in this fiscal.
"Television is a natural progression. As consumers evolve, they want their devices and experience to be smart and personal. We aim to partner the growing aspirations of the digital consumers at all levels," Micromax MD and Co-founder Rajesh Agarwal told PTI.
The company is targeting 5-8 per cent of revenues (Rs 1.4-2.25 billion) this fiscal from the television segment, he added.
The LED TVs will be initially launched in nine states including Delhi, Haryana, Maharashtra, Karnataka and Rajasthan across 24-inch to 55-inch range. The televisions will be priced between Rs 15,990 and Rs 129,990.
Micromax, which sells mobile phones and tablet PCs in India, SAARC and the Middle East countries, is aiming to grow overall revenues to Rs 2,800 crore (Rs 28 billion) for year ending March 2013.
"In the next one year, we are looking at sales of 100,000 units (TVs)... In the next two years, the aim would be to increase the TV segment contribution to 20 per cent of the revenues," Agarwal said.
He added that though the overall television market is growing at 15-16 per cent, the LED TV segment is witnessing 100 per cent. LED and LCD TVs comprise 35 per cent of the 17-18 million units market and is a fast growing segment.
The company is targeting 8-10 per cent market share of the LED TV market.
Micromax will assemble the LEDs at its new facility in Rudrapur, Uttarakhand. It is investing Rs 100 crore (Rs 1 billion) in the plant.
"We have set up an assembly line in Rudrapur, which has a capacity of 2,000 units. This will eventually be ramped up to 5,000 units. The facility will also manufacture tablet PCs and mobile accessories," he said.
A major chunk of the investment has already gone in and in the next 2-3 years, a total of Rs 100 crore (Rs 1 billion) would be invested.
For distribution and after sales, the company will use its existing channels. It's also in the process of setting up its own service centres.
Micromax is launching its home theatre range and SMART Stick, using which users can connect to the Internet through their television sets.
"SMART Stick will be priced at Rs 5,000 and will connect to any television with an HDMI port. It's like a dongle and will help users access Internet on their TVs," Micromax Director Mukesh Gupta said.
Amkette and Akai have similar devices available in the market.