New Delhi: Embarking on a new business plan to reposition its brand, consumer electronics maker Salora International today said it will expand product range in IT and telecom segments, while deciding to stop making television.
The firm, which announced in 2008 to enter into retailing of consumer electronics and appliances under the brand 'Terminal', has also shelved the venture.
Salora today also announced a marketing and distribution tie-up with Japan's Zojirushi Corp to launch thermoware range, including flasks, mugs, bottles and lunch boxes in India.
"We are working on a new business strategy to re-position brand Salora aggressively in the next fiscal. The consumers will see a range of new products in IT and telecom categories and LCD/flat panel televisions as well," Salora International Vice Chairman and Managing Director Gopal Jiwarajka told.
Commenting on the TV business, where the Salora brand had enjoyed prominence during the 90s, he said, between 1992-2000, a lot of TV companies expanded operations in India and in the process the company had lost its place.
"Now for re-building the brand, it is difficult to focus only on TVs as a category, so we have to expand the product portfolio," he added.
The company currently sells about one lakh conventional TVs every year but it will also stop manufacturing TVs on its own at the Noida unit from this month end and will outsource.
"However, we will continue to manufacture TV components that we supply to other companies such as LG and Samsung from the plant," Jiwarajka added.
On the decision to shelve its retail venture, announced in September 2008, he said: "We currently have two stores running, but the business is not going anywhere. Retail is not our forte."
Commenting on the company's partnership with Zojirushi Corp, he said: "We have a plan to launch the entire range of kitchen appliances from Zojirushi's stable in India going ahead that include products such as rice cookers, water heaters, coffee makers, etc."
The company registered Rs 520.59 crore sales in 2009-10, and hopes to close the current fiscal at Rs 700 crore.
Salora's scrips closed at Rs 37.40 per share, down 1.45 per cent from the previous close on the Bombay Stock Exchange.