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"The current challenge of the industry is momentary and would be streamlined soon."- In Conversation with Mr. Arjun Bajaaj –Director, Videotex International Group India

There are multiple challenges faced by the electronic manufacturing industry. We talked to Mr. Arjun Bajaaj –Director, Videotex International Group India.

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Boudhaditya Sanyal
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Mr.Arjun Bajaj, Director Videotex International Group_11zon

The pandemic has made a lot of people suffer and the manufacturing industry is no different. The rising prices of electronic items like television sets are directly linked to the rising prices of raw materials worldwide. So what is the future of electronics? We talked to Mr. Arjun Bajaaj –Director, Videotex International Group India, regarding all of these issues.

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What according to you is the reason behind the rising prices of raw materials?

The Indian appliances and consumer electronics industry is mainly dependent on global imports, mainly from China, to source components and some of the finished goods. Ever since the first lockdown, because of Covid19, the prices of TV panels (Open cells) have been steadily rising and have risen by over 300-400%. This is due to the shortage of supply from the Global vendors. There has been a global shortage of IC's/semiconductors while increased demand for raw materials. There is excess demand because of work from home, and there is limited supply because factories were not running at total capacity, which has created a vacuum in the supply side and has pushed up the prices. This has been a perfect storm for the industry as everything came together-supply disruption, excessive demand, and extraneous issues. This challenge has remained across the Industries.

Given the current scenario - Due to traffic congestion at China ports, there is a delay in the shipment of Raw materials of TV manufacturing in India. The delivery time for goods into India has gone up from 28-30 to 50 days. This leads to a delay in the delivery time of the goods and a complete change in production plans. On top of this, the Ocean Freight Cost has gone up five times compared to before Covid, increasing the overall Freight Cost. The situation right now is blurry – as it's changing day by day.

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What should the small brands do to survive this phase in the television manufacturing industry?

The current challenge of the industry is momentary and would be streamlined soon. In the current situation, Smaller brands should continuously work towards the long term goal with a mindset to not compromise the quality of products and keep their overheads in control. It is also essential for them to stay updated with the technology to fight the competition. Brands that don't have their manufacturing set up must choose the right manufacturing partner who can provide them with the best of products and suitable guidance about the future of the product/ technology. Having said that, many small brands have struggled with pricing impact and lockdowns, and many are still struggling.

Do you think there is something that the government can do to help the situations and producers of television?

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The world economy has suffered due to the pandemic, and unfortunately, India is one of the worst affected countries. Multiple & frequent lockdowns have impacted the cash flow of many companies and led to massive unemployment across sectors. In such times, aid from the government in the form of subsidies, tax rebates Etc would help the industry and economy to bounce back gradually.

According to you, what should be the plan of action hereonforth?

India has the potential to become the hub for Manufacturing TVs in India. However, India needs to build the bandwidth for it - Modern Infrastructure, Policy changes Etc. The approach needs to be in the long run and not short-sighted.

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For Videotex, we currently are building emphasis on superior technology. Videotex as an ODM has taken its first move and has become the first Indian ODM brand to manufacture webOS TVs in India, which is an official OS by LG(official license partner). We have already onboarded five brands for whom Videotex will manufacture webOS TVs in the market. Other than this, we ensure that our partner brands stay up to date on technology trends and challenge the competition with better products. We continuously invest in and do backward integration to provide cost-benefit to our customers and work towards the country's common goal for Make in India.

How is Videotex helping the scenario and what does becoming the first Indian ODM for webOS TVs in India mean?

As an official ODM of WebOS TV's, Videotex can now develop & offer the complete webOS TV range to brands who want to sell webOS TV's in India and move to a certified platform or add another certified platform to their catalogue. As an ODM, we no longer have to rely on Overseas companies to develop the product. This shall shorten the supply chain and increase backward integration at Videotex's end to provide an official platform at competitive pricing.

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