'We want to create a strong presence in the MNC OEM segment.'

These are challenging times for Alok Dutta, CEO, Samtel India Ltd, when MNCs

have begun manufacturing monitors in the country. He wants to create a strong

presence for Samtel in the MNC OEM segment in the shortest span possible. He has

always striven to turn the ‘local manufacturer’ factor to the company’s

advantage. And while doing that, he also ensured that there are no compromises

when it comes to product quality, service and support. Striking alliances with

Compuage Infocom and Onida was a step in this direction. Alok shares some of

Samtel’s strategies with DQCI. 

With new players entering the monitor market, what is the business

strategy that Samtel have adopted? How do you intend to beat the competition?



Samtel’s business strategy revolves around four main issues. First, channel
profitability. Here Samtel has been a leader and would endeavor to sustain this

competitive advantage in future. Second, price. Samtel has always offered

extremely competitive prices to its customers and is committed to continue this

through cost reduction and productivity improvement projects initiated within

the company. A company-wide initiative of 6-Sigma approach has been also been

launched recently to improve manufacturing efficiencies.

Third, service. Samtel’s approach to customer care is being strengthened

further by increased reach and providing on-site service with the help of our

tie-up with a large network of Onida service centers. Fourth, product quality.

Samtel monitors have been accepted over the years as a reliable and good quality

product. Samtel has emerged as the No. 1 supplier to OEMs in India because of

its excellent product quality. Our manufacturing plant has been certified

ISO-9002. And we are investing further in manufacturing and testing equipment,

process improvement and upgradation of infrastructure with a view to match world

class standards in product quality and reliability.

And with all the above mentioned strategies in place, we are more than

confident of taking on the challenges of the competition.

What benefits do you enjoy as a local manufacturer?



Being a local manufacturer, Samtel has the advantage of understanding

channel and customer psyche, preferences and expectations much better. This has

immensely helped us in our business. However, companies like Samsung and others

have also started manufacturing the monitors locally, so we have competition

there. Moreover, Samtel is now emerging as an Indian MNC with the acquisition of

the Thomson business in Ulm, Germany.

How are your relations with your channel partners?



Samtel enjoys excellent relations with its channel partners with whom it has had
relationships for the past six years. Somewhere in early 2001, our channel

partners were a bit dissatisfied due to inadequacy of supplies that lasted for a

brief period. Samtel being highly sensitive to the needs of the channel, quickly

rectified the supply situation which restored the confidence and strengthened

the relationship further.

What are your strengths vis-a-vis the channel?



Few months back, we appointed Compuage Infocom as our national distributor,

which has enabled us to expand our reach as well as induct expertise in

distribution management. The entire channel network perceives Samtel as a

transparent, fair and open organization, which is continuously focussed on

ensuring profitability of channel partners. This, according to me, is one of our

greatest strengths.

What kind of warranty/DOA policy have you adopted?



Samtel Monitors was the first company to introduce a three-year warranty policy
for its customers. Availability through all the seven days, service during

extended hours and fast turnaround time are some of the unique features of our

warranty. We believe this is our strength and our resellers as well as end-users

see this as a distinct advantage.

Can you elaborate on the after-sales support that you offer to channel

partners?



Samtel is acclaimed as the best in customer care in the industry. This is
strengthened further with our recent alliance with Onida, who has taken over as

a national service provider. Onida’s service will not only increase the reach

to over 140 locations within the country but would also provide on-site service

to our customers. A team of over 1,000 trained service personnel supported by a

networked information system ensures prompt and efficient service to our

customers.

What is your approach towards capturing market share in B and C-class

cities?



The recent alliances with Compuage Infocom and Onida would significantly

increase our reach and presence in B and C-class cities. Special promotional

schemes are being launched for these cities to promote Samtel monitors.

Are there some specific segments that the company wish to capture on a

priority basis?



Samtel monitors have a significant presence amongst Indian OEMs and assembler
market. The company wants to create strong presence in the MNC OEM segment.

Considering the fact that you are supplying monitor components to your

competitors, won’t it give rise to unhealthy and unfair competition?



Samtel, so far has been supplying color picture tubes for CTVs to companies like
Samsung and LG. The supply of CDTs (color display tubes for monitors) to these

companies is expected to commence by the mid-2002.

Globally, companies like Samsung and LG manufacture color monitors as well as

supply CDTs to their competitors. Hence, supplying monitor components to our

competitors would be in line with global practices.

The point to note is these MNCs prefer buying their components from reputed

quality manufacturers like us. So I don’t think a scenario of unhealthy

competition comes into picture.

What are Samtel’s future plans? Where does it see itself two years from

now?



With our own CDTs expected to be available by mid-2002, Samtel plans are to

substantially enhance the volumes of color monitors. We see ourselves as a close

No 2 in the industry by end-2003.

What are the other priorities on your mind?



Samtel is already investing in R&D, improvisation of product quality and
efficient distribution and service. Now we need to communicate these

achievements to create a strong ‘brand’ through various activities like

assemblers´ meet, advertisement, exhibitions, road shows, PR activities and so

on.

GOLDIE in Mumbai