“With the right investment there is enough space for every serious player coming to India”

TGD Ltd (TGDL), a new player in the Indian subcontinent, believes that the
world is ready to witness a convergence of IT and entertainment in the form of
infotainment. To capitalize on this opportunity, TGDL has looked at India and
the Middle East as the right market to explore. In an exclusive interview,
Michael Chater, Director Sales and Marketing-ME and India, TGDL, talks about
the company's strategy for India

The product line-up that TGDL has planned to sell in India is a mix of
consumer electronics (CE) and information technology (IT) products. What is the
strategy behind choosing such a mix of products?

Time Group has been into IT and electronics products in UK and other parts of
Europe for the last 19 years quite successfully. In India we will be selling
desktops, notebook PCs, PDP/LCD/TFT monitors and TV screen range of products. We
have realized that India and Middle East (ME) markets are quite similar to the
market in Europe (may be around one or two quarters behind). With more and more
products being common, I feel we are just couple of quarters away from total
convergence of these two industries into one- Infotainment. Hence, being a new
player in the Indian subcontinent we thought it would be wiser for us to play as
a catalyst.

Michael Chater Director Sales and Marketing-ME and India, TGDL

These are products that move through two different channels the CE and IT
channel. What approach would you adopt as far as distribution network is
concerned?

All our planning is being done keeping our long-term objective of being a major
brand in India and ME. Currently, we plan to have specialized multiple channels
with a common distribution point. I believe that is how major vendors in India
are doing it today. To start with we will promote our product only in three
states of the western region.

Have you got the feel of how the Indian market operates for such products?

Time Group team (that includes myself) has been visiting India for the past
couple of quarters. Yes, we have a fair idea of the same. Also we have an
experienced person Sanjay Maheshwari who is leading the operations in India.
Moreover, taking cautious steps we intend to further test our strategy through
the western region and then formulate the India strategy for the financial year
2007-08.

What will differentiate your brand from others? And what will be your USP?

The four 'Ts': Total support and customer satisfaction (European standards),
technology and product quality through our various vendor relationships, timely
and consistent supplies and true prices—'value for money' products.

What will be your approach to survive in a country like India where you
have several competing brands? What kind of marketshare are you looking at for
your different product line?

Same brands are available in the geographies we currently operate from. The key
part is that volumes in India are growing manifolds. Keeping this in mind, I
firmly believe that there will be enough space for every serious player.
Provided you have the right investments in terms of creating the market network
that ensures that the product reaches the consumer with all the four values (the
four 'T') as envisioned by us. Marketshare at this point may not be the
right barometer, however in the next three years we would like to see ourselves
amongst the top five in each of the category of products we venture into.

What is your assessment of the price sensitiveness of Indian comsumers?
Will price be a driving factor for your product in this market? Where is your
products placed in terms of pricing?

Not just India, price is the driving factor worldwide. Giving value for money
will be our proposition. As the consumer becomes more knowledgeable on
technology, the differentiator then will be how the company treats its customer
after having sold the product. We understand that and our products would be
suitably priced. Especially since the Indian consumer is yet to experience 'time'
service.

Which are the key customer verticals that TGDL would focus on for
promoting its products?

Anyone who can give me fair value in exchange for my product and services...
well! That's on the lighter side. Realistically, we are still working out the
strategy on that, since we first need to focus our energy in developing the
right mix of distribution network across India.

Do you have any plans to set up an office in India or even a manufacturing
setup on a later date?

Surely, both the things are in our short or mid-term agenda. However, I firmly
believe in the saying 'every journey starts with a first one step'. Our
first step is setting up the service and sales network across India. Based on
the experiences we would chart our further course.

TGDL has announced that it has chosen Middle East for starting a
manufacturing unit. What were the reasons behind choosing ME over China or
Taiwan, which are considered as the best manufacturing base of the world?

When we were looking for the industrial setup, we got support from Dubai
government. And as stated by Shaikh Ahmad Bin Saeed Al Maktoum, Chairman, DSO,
while signing the contract 'Dubai Silicon Oasis' is the first industrial
park to focus on semi-conductors and microelectronics in the region. The
manufacturing of such chips is not present in the region, so bringing such a
company to Dubai is a very big feat. Our goal is to bring the technology to the
region, to improve the technology and eventually export it. Further, in this
present virtual world it really does not matter whether we manufacture in China
or India, as long as the economies are better and moreover with the factory in
Dubai, a virtual gateway to ME and Africa, it will further help us getting the
required volume for effective economies

What is your new job role in TGDL and what was it before. Give a brief
about your association with Time Group?

Although I have been associated with the Board of Directors of the company since
1991, I only joined the company, as a employee in 2000 and worked as 'corporate
key relationship manager' responsible for all communications with our major
vendors like Intel, AMD, Seagate etc and new business development in the
emerging EU markets. My current role is fairly the same but at a different
geographical territory (ME and India), designated as Director Sales and
Marketing-ME and India.

Nelson Johny