hilips India, the subsidiary of the Netherlands-based Royal Philips Electronics, is shedding its skin, and new age technology in audio and video products are assisting the change in the company�s fortunes and image. It is the plasmas, LCDs and large screen televisions, however, that are the company�s focus of attention this year. From Rs 400 crore it raked in last year, Philips is looking to increase its sales from televisions to Rs 550 crore in 2005. With the CTV market set to touch 84 lakh units, Philips is aiming at sales of 8 lakh units.

At the end of 2003, the company introduced its range of low-priced televisions for rural and semi-urban markets, Vardaan. It also slashed the prices of its CTVs and immediately saw a 25 per cent rise in sales. The company says there was nothing out of the ordinary about this move. "Price erosions of 8-10 per cent are normal in televisions. In fact, in new technology, such as flat screens, the erosion is as high as 15-20 per cent. The launch of Vardaan allowed steeper price erosions because it is lower on trade margins," says Suresh Sukumaran, business head, televisions, consumer electronics, Philips.... more