Thomson TV will also be expanding its production line in Noida
French consumer appliance firm Thomson is eyeing sales of 300,000 television units in FY20 and revenue of Rs 500 crore by the end of this fiscal in India.
Much of the push will come from its entry into the premium TV segment of the Indian market through the launch of the official Android TV (certified by Google and with an in-built Chrome-Cast).
In an interaction with Moneycontrol, Avneet Singh Marwah, CEO, Super Plastronics (exclusive brand licensee of Thomson TVs in India) said the brand is among the top-selling ones in the online space.
"We get a lot of visibility through Flipkart and have no plans to go offline for selling Thomson TVs," he added. Thomson re-entered the Indian market in 2018 and has sold 200,000 TV units in the country in one year.
Marwah said the plan is to reach a sales figure of 500,000 units in India by the end of this financial year. This will lead to a revenue addition of about Rs 250 crore in FY20.
The company is also expanding the Thomson TV production facility in Noida. Right now, it produces around 30,000 TVs a month, and this will be doubled up with this new facility.
He added that lowering the goods and services tax (GST) will help boost sales and also reduce prices for consumers.
The government will also stand to benefit with higher tax revenues due to a boost in sales volumes, he added.
Televisions with screen size up to 32 inches are taxed at 18 percent while those above 32 inches are taxed at 28 percent.
Marwah explained that once the GST rates come down more number of customers will buy televisions with a screen size of 32 inches.
"Smart TVs have a market penetration of 22-23 percent in India. But they are still taxed at 28 percent," he added.
Marwah said while Thomson has entered the premium TV segment in India, affordability will be their key focus. Their 65-inch 4K official Android TV is priced at Rs 59,999.Going forward, Thomson will focus on both smart and regular TVs. However, Marwah said the distribution model will be fully online.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.