Simmtronics invests Rs 30 crore to make set-top boxes under own brand

India-based electronics manufacturer Simmtronics said it will start manufacturing set-top-boxes (STB) under own brand, and is investing Rs 30 crore to ramp up its production unit. The company, which has been making set-top boxes for other companies, has decided to make set-top boxes under its own brand name.

It plans to manufacture 10-15 percent cheaper set-top boxes than the others manufacturers.
[caption id=“attachment_82019” align=“alignleft” width=“300”]  Representational image. Reuters[/caption]
Simmtronics will be manufacturing the entire range of STBs both for the cable and the satellite platforms. The first product will be a STB with Wi-Fi router which will convert an existing TV into a Smart TV and will help users browse You-Tube, Google sites, Facebook etc. on their existing television.

The company is looking for at least a 10 percent market share in set-top box business in India, which will add minimum of Rs 500 crores to the company’s revenue in 2015. Also, in the next two years Simmtronics aims to take up atleast 25 percent share in the burgeoning market.

“Simmtronics is planning to launch this box at the lowest price in the market,” said Indrajit Sabharwal, managing director, Simmtronics.

The company is already in discussion with the leading operators and has a forecasted order of over 1 million set top boxes to be delivered in the next quarter. It is also planning to export this product in their existing international markets like Dubai, Africa, etc.

According to the deadline set up by the Information and Broadcasting Ministry, the digitisation drive should cover the entire country by the end of this year, till now STB’s which have been set in the major countries, are manufactured by foreign manufacturers, thus such a drive by an Indian-manufacturer will provide a boost to the digitization drive.

Due to the digitisation act passed by India, there’s requirement for about 25-30 million set-top boxes each year for the next 4 years. Today 80 percent set-top boxes are imported from China.