The brand is eyeing a Rs 300 crore turnover by next financial year.
Home-grown television brand Daiwa is investing Rs 50 crore in their Greater Noida unit to expand production capacity.
In an interaction with Moneycontrol, Arjun Bajaj, CEO, Daiwa India said that they want to expand their presence in the Tier 2 and Tier 3 markets in 2019.
The parent company of Daiwa , Videotex International, has been an original equipment manufacturing (OEM) firm for the last 35 years. Bajaj said that currently they have three manufacturing units in Greater Noida, Ludhiana and Himachal Pradesh.
“We also have our own R&D center and design house is in Shenzhen, China. We are expanding our production capacity at the existing Greater Noida Unit with an investment of over Rs 50 crore,” he added.
With the increased facility, Bajaj said that Videotex aims to increase its production capacity to more than 75,000 TV units each month in a single shift of eight hours.
“Our growth rate has been 15 percent month on month, with our aggressive roadmap, we targeting a turnover of over Rs 300 crore by the next fiscal,” said Bajaj.
“Our launches shall include the refreshed look and user interface for both smart televisions and non-smart televisions, focusing upon the price points with assured quality and value added features,” added Bajaj.
He added that the company is looking at bringing new technologies to the Indian markets which include AI-based user interface, slim design and enhancing the picture quality in terms of colors and brightness.
GST a pain point?
The goods and services tax (GST) regime taxes the television segment at 18 percent for televisions upto 32 inches, and 28 percent for televisions above 32 inches.
Bajaj explained that while GST has helped create a level-playing field, the current concern is the GST for large screen televisions. Due to the difference in tax rates, Bajaj said that the price gap is becoming the biggest deterrent.
“TVs have always been a medium of entertainment, but with this is perceived as luxury. To offset this, many brands have increased the prices of their larger sized TVs, until GST makes a shift,” he added.
Bajaj said that they have begun discussions on setting the brick and mortar stores and that Daiwa will set up their first store, which is an experience zone in Delhi by the end of this year.
“The purpose of having our own offline stores, is to be a 100 percent omni-channel destination. It is difficult to segregate the consumer type as he is looking at the most convenient medium to shop, be it online, offline or mobile,” he added.