Display - India's Samtel to Expand CRT Production Capacity
December 02, 2004
Samtel Color, India's largest TV picture tube manufacturer, announced plans this week to invest 4.1 billion Rupees (US$92.7 Million, 1 USD = 44.23 INR) over the next year to double its production capacity.
Its expansion plans call to double its present CPT (Color-Picture-Tube) manufacturing capacity of 5.5 million units to 11 million units by the end of fiscal 2006. In order to reach production goals, Samtel is adding a one-million-unit capacity production line for large size flat picture tubes at its Ghaziabad factory for an estimated cost of 1.3 billion Rupees (US$29.3 million).
In addition, Samtel is setting up two new CRT (Cathode-Ray-Tube) production lines at its factory in Kota. The new lines, which will produce 14", 20", and 21" CRTs, are also scheduled to be up and running by the end of fiscal 2006. Together they will have a capacity of close to five million units. The new CRT lines will require investments of around 2.8 billion Rupees (US$63.2 million).
The increase in production capacity comes on the heels of a recent three-year deal that Samtel struck with Thomson to supply the French electronics maker with color picture tubes. The company also anticipates more deals with foreign TV vendors in the near future. Presently about 25% of Samtel's revenue comes from exports, but exports are expected to account for 50% of revenue in the next few years.