Avneet Singh Marwah, Director and CEO, Super Plastronics Pvt. Ltd

Anil Mascarenhas, Editor, IIFL | Mumbai | December 01, 2016 12:44 IST

“A growing middle class population, increasing disposable incomes and rising number of nuclear families are expected to aid the market of consumer electronics in India.”

Avneet Singh Marwah, Director and CEO of Super Plastronics
Avneet Singh Marwah, Director and CEO, Super Plastronics Pvt. Ltd, is based out of Noida. Avneet joined SPPL in 2009 and has played a pivotal role in expanding Kodak’s foray into the consumer technology- television vertical in India, as an exclusive brand licensee. Additionally, he heads the R&D and product development verticals at SPPL, aligning the brands endeavour to design, develop & make all its products in India. Furthermore, under his energetic leadership SPPL recently bagged the “bestselling Television brand” annual award from Shopclues.com. Prior to joining SPPL, Avneet was associated with CPR Capital Services and holds a MBA degree. He is an avid sportsman and traveller. SPPL is a 30-year-old manufacturing firm, incorporated in 1997 and has risen to become one of the foremost OEM’s in the LED industry. SPPL has manufacturing units in Noida, Una and Jammu and over 23 company owned branch offices, across India.
 
Super Plastronics Pvt Ltd (SPPL) is a manufacturing concern established in 1990 with its Head Office in Noida. Its initial business was plastic injection molding, which then graduated to manufacturing of CRT TVs and to LED TVs on date. We were one of the largest manufacturers of CRT TV cabinets in the 90s and early 00s. Today we are one of India’s foremost OEMs in CRT and LED Television. We have three manufacturing plants in India located in Noida, Una and Jammu. We have an employee strength of over 1000 across India and are expanding as we grow.

Replying to Anil Mascarenhas of IIFL, Avneet Singh Marwah, Director and CEO, Super Plastronics Pvt. Ltd. says, “A growing middle class population, increasing disposable incomes and rising number of nuclear families are expected to aid the market of consumer electronics in India.”
 
Give us an overview of how the consumer electronic industry is doing in India. What is the market size for HD LED sets?
At present, the LED TV market is close to 14 million sets which is likely to cross 1 Billion USD in revenue by 2019, a lot of which can be attributed to increasing demand of 32 inch LED TV in rural areas and the want of consumer to own a good TV. In urban cities, we see a higher demand for large sizes which are driven/supported by EMI schemes. 
 
After the historic step taken by the government of India, of demonetisation against black money there has been a major drop in sales of consumer electronics (an estimation of almost 75%). Major hit has been on the affordable category market as it is majorly driven by cash sales. Prior to above, there was a growth of 35% in the market which was rising steadily. However, in the  long run we feel it will benefit the consumer electronic market but may take up to 6 months for sales to resume as before. Affordable brands, which are the ask of the industry, will benefit the most due to demonetization as they are likely to grow at a bigger pace than multinationals. Growing middle class population, increasing disposable income and rising number of nuclear family are expected to aid the market of consumer electronics in India.
 
With the Make in India initiative, what changes are happening on the ground?
The Make in India (‘MII’) initiative gives a huge boost to all the manufacturers. Indirect taxes for those, who do not make in India are on the rise as government is taking correct measures and has introduced National Investment and Manufacturing Zones as giant industrial greenfield townships to promote world-class manufacturing activities. If any TV brand is to survive in India in the long run, they would need to Make in India. Laterally, it also promotes cost reduction and provides employment opportunities.
 
Through the MII project more companies are looking to set up factories, but there is scope for further improvement as we lack on basic necessities like infrastructure due to which logistics cost goes up which effects the supply chain as well. Indian infrastructure is rated 54th among 59 countries in comparison to other developing countries. Although these rapid changes should encourage investment from across the globe in various sectors which would consequently help infrastructural development.  
 
Walk us through the inception of Super Plastronics Pvt. Ltd and how it has evolved over the years?
SPPL was initially started as a company under a shed and one machine for moulding. Our Chairman and managing director, Amarjeet Singh Marwah started this company. We then progressed to plastic injection moulding for various TV brands, which then led to opening of our own manufacturing unit for televisions. SPPL was an OEM for many leading brands and now runs a 5 way backward integrated plant.
 
Then we launched our own brand and there was no looking back after that. We took on two more Indian brand with a brand value of more than 40 years. Then company thought we should have a multinational brand under in our array of brand to enable us to expand in urban areas and all tier 1, 2 cities. Hence, after due research and much hard work, we succeeded in becoming brand licensees of Kodak HD LED TV’s in India.
 
What prompted you to bet on a name like Kodak TV and bring it to India? How much of the components are made in India?
‘Kodak’ as a brand has a very high recall value and we were looking to digress from our kitty of Indian brands and bring into play a global brand which would help our company pave its way forward. In fact, it is amongst the top 10 recalled brands in the world. It comes with a very high brand equity and we were sure that it would strike the right cord with the Indian market. Most of the components are imported from Taiwan, Korea and China. We assemble the CKD kit in India.
 
What key differentiators do you find in the product given that they were a name in cameras but failed to capitalize on the digital trend soon enough to retain their place of pride? 
Kodak, as a brand globally may have failed to keep up with growing digital trends but is making a comeback in many ways. As mentioned earlier, it is one the top 10 recalled brands in the world and comes with a high brand equity.
 
Working with Kodak, we have been subjected to global quality standards that would enable our products to be branded under the Kodak brand name. In LED TV’s, there is only so much that can differentiate from another brand but we seek to provide high quality at affordable prices so that our customers see value for money. 
 
Give us a revenue break-up of your various businesses? How much revenue do you expect from Kodak TV initiative?   
As a policy we do not share revenue breakup or projections.
 
In terms of innovation, could you cite some developments at your end? 
We introduced the Kodak HD LED TV 32HDXSMART with an anti-glare glass cabinet and a quick interface. It is a very innovative and sleek design that has not been seen in the Indian market before. It is also one of our best seller’s and we have received tremendous feedback for the product.
 
What is the price range of your products?
Our products are ranged from Rs 12500 to Rs 38000.
 
Comment on your distribution and marketing initiatives. How much do you expect to come from online sales? Do you have your own showrooms?
We have over 20 company owned branches in India, which we plan to increase over a period of time. We also plan to launch Kodak HD LED TV’s offline through these branches where in if a customer wants to go and physically see a television before purchase, he can do so. There are no plans of opening exclusive showrooms as of now. We expect about 50% of our sales to come from online channels post introduction of the televisions in the offline market.
 
How many manufacturing units do you have? What is the installed capacity and utilization? Comment on your employee strength.
We have 3 manufacturing units based out of Noida, Una and Jammu. These units have a combined capacity of 7, 80,000 units per annum. We at present employ about 1000 personnel which is an ever growing number.
 

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