Domestic set—top—box makers are looking at Rs 4,500 crore turnover in the financial year by capturing 50 per cent market share, as hiking import duty on such devices is expected to boost indigenous manufacturing.

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) also hopes to create 12,000 new jobs.

“With rationalisation of import duty, 50 per cent of STBs would be made in the country. Taking the final product price to be about Rs 1,500, the indigenous manufacturers would have a turnover of Rs 4,500 crores, with 50 per cent market share,” CEAMA President Anirudh V Dhoot told PTI in response to an e—mail query.

The Budget 2013—14 presented by Finance Minister P Chidambaram proposed a hike in import duty of set—top—boxes from 5 per cent to 10 per cent.

CEAMA estimates that the total demand for set—top—box (STBs) would be about 60 million and the turnover of overall STB segment would be around Rs 9,000 crore in the next one year.

Dhoot said that as per industry average about 250 workers are required to produce 2 lakh STBs in a month.

“The direct employment for only assembly of STBs would be about 3,000 persons. If we take this into account, the employment generated in the manufacturing of inputs, the total employment would work out to about 10,000 to 12,000 persons,” he said.

Foreign STB makers almost wiped out domestic players during phase I and II of cable TV digitalisation with around 95 market share.

Out of total installation of about 55 million units, domestic players have been able to sell about 10 million units of STB as on December, 2012.

In pre-budget data shared with the Department of Electronics and Information Technology, CEAMA said Indian players are losing business to imported STBs due to price difference arising out of tax structure.

At basic production cost of Rs 1,012 per unit, the final price of STB made by Indian players lands in the market is Rs. 1,296.27 compared to Rs. 1,202.5 per unit price of imported STB, CEAMA had said before the Budget was presented in Parliament on February 28.

PTI

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