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Sale of electronic goods booms

December 21, 2006 13:14 IST

Sound of cash registers ringing, courtesy football world cup, merry associated with new beginnings and reviving old relationships, overseas buyouts and million dollar investments best describes year 2006 for the Indian consumer electronics industry.

Looking back, the sector, which is aiming to expand its market size to $160 billion by 2016 from the current $22 billion, will be grateful to 2006 that it has taken a big step during the year toward achieving its goal.

One of the biggest reasons to smile for the manufacturers is the phenomenal growth experienced by high-end products like the flat panel displays and plasma televisions, a key to achieving the target.

The year saw revival of Sanyo-BPL relationship setting ambitious targets and the quadrennial event football World Cup helping the industry overcome the usual mid-season sales slump during June-July.

Buoyed by the overwhelming response, Korean gaint LG Electronics announced that it would cross Rs 10,000 crore (Rs 100 billion) in revenues in India during the fiscal 2006-07.

The year also saw homegrown major Videocon continued from where it left last year as far as acquisitions were concerned, as it led a consortium in reaching an agreement to acquire South Korea's debt-burdened Daewoo Electronics for about $729 million.

On the investment front, Korean major Samsung led the pack announcing to pump in $100 million to set up a manufacturing complex at Sriperumbudur in Tamil Nadu to make it a global manufacturing hub.

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