Toshiba eyes big growth in India

MUMBAI, INDIA: Japan's manufacturing major Toshiba Corp expects to grow quickly in India, despite entering the market later than global rivals, because of rising incomes and a larger pool of modern retailers, company officials said.

Toshiba lags its South Korean rivals Samsung Electronics Co Ltd, LG Electronics and China's Haier Group in the fast-expanding Indian market, but expects to gain a significant market share fairly quickly.

"It's not too late. We think now is the best time to be here because the economy is booming, the middle and upper classes have more spending power, and retail networks are growing," said Yoshihiro Fujimaki, country head of home appliances.

Toshiba sells televisions, personal computers and digital products imported from China and Thailand. India's free-trade agreement with Thailand makes imports competitive, Fujimaki said at the launch of a new range of premium refrigerators.

Toshiba India, a fully-owned subsidiary, expects sales of home appliances to hit $100 million for the fiscal year to March 2008 and expects to grow at about 15 percent annually for a few years, or ahead of the market, he said.

That is only a fraction of Samsung's target of $5.5 billion in sales in India by 2010.

Samsung, which aims to have half the Indian market for flat panel televisions, also makes mobile phones, refrigerators and washing machines at two plants in India.

Toshiba said it was committed to India, which it said mirrored China in its potential for growth. Toshiba has three manufacturing plants in mainland China.

"India is an important market and we are very serious about it, even if we do not manufacture here now," said Masayuki Nitta, general manager of the home appliances division.