HCL Peripherals to manufacture LCD monitors

HCL Peripherals is now entering into the production of LCD monitors, both 15
and 17 inches. According to S Pattabi-raman, Executive VP, HCL Peripherals,
"With the market for LCD monitors growing at the rate of 40 percent plus,
it is the ideal time for us to enter into this business". Initially, it
plans to manufacture 2,500 LCD monitors per month.

As far as the manufacturing of the LCD monitors is concerned, HCL Peripherals
has done its own design for the product, while components are being sourced from
countries such as China, Taiwan, Hong Kong, Indonesia and Thailand, on an
exclusive basis. "With our rich experience in the display segment, we have
done the complete designing of the product. Our product will be at par with the
competitors, both in technology and design. However, we have kept the price 10
percent lower to beat the competition," remarked Pattabiraman.

Talking about the benefits of local manufacturing, he elaborated, although
there is not much of advantage for the local manu-facturers here, still there is
a duty difference with which manufacturers can play against the imported
(full-finished) product. However, once the WTO regime is implemented in 2005,
companies like HCL Peripherals can enjoy the early-mover advantage.

Speaking on the sidelines, Pattabiraman observed that the government should
look into the high duty cost involved in manufacturing business, which is
discouraging. "Altogether, a product attracts 28 percent tax under
different heads from the central and state government." Before going to the
market, HCL plans to strengthen its service support by appointing 80 more
authorized service providers (ASPs) across all the locations. Meanwhile, it is
working out a series of campaigns and roadshows to promote the LCD monitors.
"We see a great opportunity for LCD monitors among educational
institutions, BFSI segment, government departments and other areas."

Nisha Kurian

Chennai (CyberMedia News Service)