Zenith Computers Ltd, a leading Indian branded computer maker, expects revenue for the year to March 2005 to increase by about 23 percent, its top executive said on Wednesday.
Shares in the company rose as much as 4.2 percent and closed 2.6 percent ahead at 19.65 rupees despite a weaker Bombay market.
"We expect (this year's) revenue to be 3.5 billion rupees-plus," Managing Director Raj Saraf told a news conference in India's technology capital, Bangalore, as Zenith launched seven new laptops aimed at corporate buyers.
The seven new brands priced between 32,000 and 70,000 rupees ($690-$1,510) are part of Zenith's new effort to take on titans such as International Business Machines, Dell and Hewlett-Packard Co in an explosive Indian market.
Laptops made up just 3 percent of India's 3 million personal computer sales in the organised market in 2003/04, but grew 74 percent on a small base, while overall PC sales grew 32 percent. PC sales are forecast to grow 27 percent in the current year.
Zenith, a rare branded player in an industry made up mostly of small assemblers, posted revenue of 2.85 billion rupees last year. Saraf declined to provide a net profit forecast, citing fluctuating margins in a cut-throat market.
Saraf said Zenith's share of the Indian market for laptops, which accounted for 5 percent of its revenues in 2003/04, was expected to double this year from 2-3 percent last year.
Revenue share from laptops was also set to double to 10 percent as sales were expected to touch 15,000 units from about 2,700 last year.
Corporate customers like Siemens and State Bank of India showed potential for bulk purchases, and the new brands aimed at various profiles within a client company were expected to boost sales, Saraf said.
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