The Hindu Business Line : Samtel to exit monitor business

TO cope with the ever growing demand for advanced colour picture tubes (CPT), the Rs 1,100-crore Samtel Group, is all set to focus on its core areas and exit from other businesses.

A dominant player in the colour picture tubes market, the group is proposing to exit out of its monitor business. At present, the monitor business is a part of Samtel India Ltd.

Recently, as part of its consolidation process, Samtel Color Ltd, the flagship company of the group, had taken over the deflection yoke (DY) business of Samtel India as a going concern. ``The intention is to focus on core sectors. Colour picture tubes (CPT) will continue to remain our main business,'' Mr Satish K. Kaura, Chairman and Managing Director, Samtel Color Ltd, said.

When asked whether Samtel India would consider exiting from the shrinking black and white segment, Mr Kaura agreed that the segment was constantly declining. ``Though we don't see a long-term future in this business, there are no immediate plans to exit it. However, we keep doing a constant evaluation of our businesses,'' Mr Kaura told Business Line.

Samtel now proposes to focus on higher value-added products, namely super flat tubes, colour display tubes (CDT), and higher value tubes (29 inches and above).

The company has also set a new plant in Ghaziabad to produce super flat picture tubes and higher value tubes at an investment of Rs 350 crore. The tubes are being evaluated by some of the major players in the industry such as Philips, Samsung, LG.

Commenting on the role of research and development in the company, he said, that ``all the products have been developed indigenously, using our own in-house facilities.''

No wonder the company has applied for many patents and already has around 22 patents in the group.

For continued upgradation of its technology the company has also tied up with major institute's and labs in India and abroad.

``The existing capacity of the company is 5.1 million, which will be gradually increased,'' he said.

To make a permanent presence in the international market Samtel Color is also targeting to generate a higher proportion of its turnover from exports.

``The company has taken a view to build deeper relationships with large consumer electronics manufacturers,'' he said.

After recently tying up with Vestel in Turkey, the company is now negotiating with two other international players.

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