Moser Baer forays into PC peripheral segment

Amrita Tejasvi

New Delhi

September 7th, 2007

Leveraging on its product portfolio Moser Baer has ventured into the business
of PC peripherals. The company has introduced three sets of different products
that include USB drives, memory cards and optical disc drives in the market and
more are scheduled to be introduced in a phased manner.

For the distribution of PC peripherals, Moser Baer has tied up with two
national distributor Salora International and Neoteric Informatique. LCD, TFT
monitors and external hard drives will be distributed by Neoteric and Salora
will look after the other products. The company has also tied up with service
center of Neoteric F-1 for ensuring warranty of the products. Neoteric has 70
service centers spread across the country.

Moser Baer had introduced USB drives in the beginning of this year, which was
sold in the market through the stationary division of optical media devise
segment. The company has now decided to market the product through the IT
channel.

"Earlier USB drives were sold through stationary dealers. We are now
looking for IT channel as 75 percent sales of pen drives are sold through them
and we don't want to miss that opportunity," said Sudip De, Asst. GM,
Domestic Marketing, Moser Baer India Ltd.

Moser Baer is set to introduce keyboard, mouse and speakers in the market
that are scheduled to be launched in second week of September in Chennai,
Bangalore, Mumbai, Kolkata and New Delhi. The next slot of products to be
introduced by Moser Baer would be LCD, TFT monitor, external hard drive, TFT
tuner cards and Cabinets followed by web camera, multi-mobile chargers, UPS of
all range and RAMs.

"We are introducing the products in a phased manner as it is not
possible to launch such a vast range at one go. Our objective is to cover the
pan India market and we would not be concentrating on any particular market
segment. As we were a little late in entering the market in peripheral business
we are covering the entire spectrum in a planned manner", commented De.

The expansion of product line is expected to turn the group turnover to Rs
20,000 crores in the next three years. The company is currently stands at
turnover of Rs 2100 crores.

Moser Baer had formed its IT hardware division for India and SAARC in June
this year under which it planned to introduce a total number of 15 products in
the market out of which four would be launched every month. The short-listed
products are currently traded, outsourced and are introduced in the domestic
market with the brand name of Moser Baer.

The company hopes to get into manufacturing some of the products after
certain period of time.

On the pricing of the product De said that Moser Baer stands at premium
position and it will not compromise with the quality of the products, therefore,
the prices will be moderately high.