Mirc Electronics sees FY10 revenues at Rs20 bn

Mirc Electronics sees FY10 revenues at Rs20 bn
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First Published: Tue, Sep 15 2009. 04 43 PM IST
Updated: Tue, Sep 15 2009. 04 43 PM IST
Mumbai: Mirc Electronics Ltd, which sells household electronic appliances under the Onida brand, sees annual sales growing by a quarter to Rs20 billion, from around Rs16 billion last year, a senior official said.
The growth will come from both the premium as well as the mass category, bouyed by an aggressive brand campaign, Sriram Krishnamurthy, vice-president, sales and marketing, told reporters on Tuesday.
“We see growth in two segments, one is the metro markets at premium positions...and at the other end our basic segments are also seeing strong growth”.
He also said the firm is doubling its advertising and marketing spend to Rs1 billion this year on new campaigns for its products.
“Last year we spent around Rs500 million, this year we plan to double that,” Krishnamurthy said, referring to ad and promotional spends.
The firm is in the process of relaunching its brands by promoting a new brand mascot in place of its trademark devil, the firm’s iconic mascot which helped popularised the campaign “neighbour’s envy owners pride”, for its products.
“For over 20 years, Onida relied on the devil to give it brand image and recall. The India of today is no longer concerned with ‘neighbours envy´ when it comes to durables,” the company said in a statement.
Mirc, which started selling television over two decades back, has diversified into other household appliances such as washing machines and microwave ovens to expand its revenue base, but TV sets still account for half its revenues.
“However, the other categories will grow in importance. Not many customers today know us as a non-TV brand,” Krishnamurthy said.
Through its new brand campaigns, the company is targeting the new age first time householders, its chief executive G. Sundar said.
Mirc is also setting up a multi category plant at Roorkee in northern India and operations are expected to commence within a few months, Krishnamurthy said, but did not outline the investment.
Shares of Mirc Electronics ended down 0.28% at Rs17.75 in a firm Mumbai market.
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First Published: Tue, Sep 15 2009. 04 43 PM IST