MUMBAI: In a strategic move, the Rs 700-crore Sansui Ltd is planning to shut down 24 of its branches which are currently providing in-house logistics services to the company. The objective behind the move is to do away with in-house logistics services, and instead start outsourcing services.
The company is currently in talks with logistics service providers such as Geologistics and DHL, among others, to enter into tie-ups with them and then source logistics services from them, Sansui Ltd director (marketing & sales) Anil Khera said.
On the company’s new plans, Mr Khera said: “With the move, we will be able to save up to 20 per cent on in-house logistics and reduce working capital by about 10 per cent.”
Sansui is also planning to outsource original equipment (OE) units for “˜Sansui’ CTVs and for the purpose is currently in talks with Hotline Electric Ltd, an original equipment manufacturer (OEM) for CTVs to source OE units from them. At present, Hotline Electric Ltd provides OEM units to companies such as LG and Samsung as well.
Besides, Sansui Ltd is for the first time planning to move into the direct-cool refrigerator segment and launch a direct-cool refrigerator under the umbrella brand “˜Sansui-Nutri-Fresh’ in India this month. Explained Mr Khera: “We will be sourcing our direct-cool refrigerators, based on the health platform in 170 litres capacity from Videocon Appliances Ltd. We hope to sell around 50,000 units of this new product in the first six months, and one lakh units within a year. Our product will be priced at Rs 6,990.”
As part of its marketing strategy, the company is planning to sell its direct-cool refrigerators through its existing 5,000 dealers based across the country. At present, Sansui markets its CTVs and audio systems through the same route. “To promote our direct-cool refrigerators, we are planning to invest Rs 5 crore on the new consumer promos. And, with the move we hope to garner a market share of around 10 to 15 per cent within a year,” he added.
The company has recently relaunched its entire range of audio systems with a new lifestyle image, a more fashionable look and a new sub-brand called “˜LF1′. “With the move, we will be introducing at least four to five new models in audio systems priced competitively at Rs 13,000. We hope to sell around 10,000 units of our new audio systems soon,” informed Mr Khera.
>From The Financial Express