1. Prepared By
Nilesh Sen
Nikita Bansal
Sachi Saraf
Rahul Sharma
Siddarth Shah
Jaydeep Budeliya

2. Distribution of manufacturers of CTVs in terms of production
volume
Production Year
p.a 1982 1985 1989
Less then 500 17 31 46
501 - 2500 9 32 24
2501 - 5000 5 16 12
5001 - 10000 3 10 8
10001 – 50000 - 20 27
50001 - 100000 - 9 2
100001 - 200000 - - 1
Share (%) of
Top 5 companies 44 29 32.5
Top 10 companies 64 50 52.00

3. The Indian TV Market and its Future

4. VIII Five Year plan Targets for TVs
( Quantity in millions , value in Rs. Millions ) (Base Price _1988)
year
1990-91 1991-92 1992-93 1993-94 1994-95
B&W
Qty 5.5 6 6.5 7.3 8.0
Value 11,000 12,000 13,200 14,600 16,000
Colour TV Qty
Value 2.0 2.5 3.0 3.5 4.0
13,500 16,850 21,000 20,500 30,000

5. Saturation Levels of TV as on 1991
Income No of sets owned (000s) %
Category B&W Colour Total Saturation
(household)
Less then 12500 4000 700 4700 5.6
12501 – 25000 9000 10500 10500 27.3
25001 – 40000 7300 9300 9300 64.5
40001 – 50000 1700 3500 3500 92.5
Greater then 50000 1100 2300 2300 111.8

6. Estimated Number of House Hold Income Class wise
(000) (As on 1990)
Income Category Rural Urban
Less then 11000 68,914 14,895
11001 – 22000 24,445 13,940
22001 – 36000 7,232 7,175
36001 – 50000 1,191 2,591
Greater then 50000 552 1,505
Total 1,02,334 40,106

7. TV sets Owned per (000)
Inhabitants
World 69
Algeria
84
Egypt
Canada 586
Mexico
124
USA
Brazil 812
Japan 194
589
Asia 315
Singapore
426
Hong kong
China 127
Thailand
108
Vietnam
Malaysia 37
India 144
33

8. 1989’s Growth in Major
Scenario 1990 Exporters
Price of B & W tube USSR,South
East
Indian and Colour Asia,West
TVs tube Asian

9. Dealer
Price Promotion
Network

10. Excise Duty formed a Significant Component of the Final
price of a TV in India.
The Government saw TVs as luxury items and hence TVs
were subject to increase in taxation in Virtually every budget.
In 1991-92 the production had fallen to as low as o.8 ML.
sets as compared to the peak level of 1.3 ML sets in 1988.
In 1991-92 budget excise duties on both colour picture tubes
and Colour TVs were increased.
The Special excise duty on Tvs increased from 5% to 10%
and excise duty on B&W TVs abolished.
The result was a drastic reduction in sales of TVs in 1991-
92.
The drop in CTV sales was especially sharp from 1.2 ML to
0.92 ML.

11. Excise Duty Absorption by Income Categories
Year Majority Buyer of CTV Excise Duty Paid
Income Category On TV
(Rs. P.A.)
1985 50,000 900
1986 36,000 1500
1987 36,000-50,000 1750
1988 36,000-50,000 2000
1989-90 22,000-36,000 2375
1991 11,000-22,000 3125

12. Foreign Brand Names
• According to Libralisation Policy the Govt.
alowed the use of Foreign Brand names.
• At these prices and tariff rates the Indian
market is to small and not attractive enough to
attract Japanese.

13. Import-Export Policy
• In Budget for 1991-92 the customs duty on
raw material,individual parts,capital goods and
finished componentsfor the electronics
industry had been reduced by 10%.
• Import of capital goods was liberalized with a
concessional duty of 15% linked to export
obligation.
• According to an analysis of 1992-93 the export
would suffer by 31%.

14. Electronics Industry Analysis
Porter’s five forces model
(a framework for analyzing a particular industry)

15. Threat of New Entrants (Low)
Barriers to
Product Differentiation
Entry
Capital Requirements
Switching Costs
Technology, Know-how and
Innovation
Government Policy

16. Bargaining Power of Suppliers (Medium)
Suppliers exert power
in the industry by:
• Very low Manufactures of B & W and
* They raise Prices
CTV sets.
• Suppliers are forced to cut their prices
Powerful suppliers or go out of business
can in industry make
profitability

17. Bargaining Power of Buyers
(Low to Medium)
• Products are fairly undifferentiated Buyers compete
with the supplying
• Buyers face few switching costs industry by:
• Buyers are price sensitive and demand * Prices
high quality

18. Threat of Substitute Products (Low)
Products
with similar • There are few substitutes from other
function industries, if any.
limit the
prices firms
can charge