PICTURE PERFECT

New Delhi, Nov. 26: Hitachi Home Electronics Asia is looking at the possibility of setting up a manufacturing facility in the country.

“The company is conducting a feasibility study on setting up a facility here,” said Tarun Jain, country head of Hitachi Home.

Most consumer durable manufacturers have strong bases in India and have been able to aggressively reduce prices to capture larger market shares by localising production.

Jain, however, said the company was in no hurry to set up a local production base. It will take a call only after the feasibility study. “Currently, we are focusing on carving a niche for ourselves in the high-end market.”

The electronics major, which is looking at expanding to Tier II cities, aims to capture 10 per cent of liquid crystal display (LCD) and 20 per cent of plasma television markets.

At present, the company claims to have a 4 per cent share of the LCD market and 15 per cent of the plasma market. The flat panel display market is estimated to touch 3.5 lakh units by the end of this year and expected to double by next year.

Jain said, “As part of our growth plans, we plan to move to Tier II cities in a focused manner and increase retail outlets by 35 per cent.” The number of Hitachi exclusive galleries — Hitachi Experience Zone — will be increased by 65 per cent. Service outlets will also be ramped up.

“To strengthen our existing network, we are planning to set up a Hitachi-owned service centre in the coming months,” he added.

As part of its growth plan, Hitachi will launch its ultra thin LCD series in India by the first quarter of 2008. The company will also add a 60-inch plasma set to its local range by the end of the year. Hitachi is working on reducing panel thickness further and by 2009 will offer a 19mm LCD set.

“We are bringing the world’s slimmest LCD television set to the Indian market. As a group, Hitachi will serve the high-end LCD market with its ultra thin series,” said Tadashi Nishiuchi, managing director of Hitachi Home.

The Hitachi ultra thin LCD series is said to be 70 per cent slimmer than existing LCD television sets and will be available in 32-inch, 37-inch and 42-inch categories.

“We have been allocated an advertising and promotion budget of Rs 15 crore exclusively to promote our flat panel displays,” company officials said.