Business | Technology
Eros sets sales target of Dh1.3b this year
Local electronics distributor Eros Group expects an increase of 35 per cent in its sales this year as the ongoing property boom and population rise fuel demand for electronics goods.
- By Naushad K. Cherrayil, Senior Sub-Editor
- Published: 01:04 March 1, 2008
Dubai: Local electronics distributor Eros Group expects an increase of 35 per cent in its sales this year as the ongoing property boom and population rise fuel demand for electronics goods.
The group achieved sales of Dh960 million in 2007 and hopes the figure will reach Dh1.3 billion this year.
"Last year we recorded strong growth across all categories. The main drivers were LCD television sales that grew three times while plasma TV sales grew 40-50 per cent, mobile phone sales grew 25-30 per cent and MP3 players about 20 per cent," chief executive officer Deepak Babani said.
He said before the current UAE-wide economic boom began a few years ago, Dubai was the main market. Now demand for electronics items is also strong in Abu Dhabi and Sharjah, he said.
Babani said the electronics market is very competitive compared to other sectors despite lower margins.
The cost of doing business is going up and at the same time it is important to draw customers with attractive prices, he said, adding that "the big challenge for us is how we can engineer the costs despite being customer-centric."
In the next two to three years, the demand is going to be strong in the electronics market, Babani predicted and put the market size at Dh12 billion.
He said demand for LCD TVs is expected to grow by over 60 per cent to 275,000 units, plasma TVs by 30,000 units and mobile phones by 25 per cent to nine million units.
"We are looking to add more brands under our umbrella and we are studying the market. We are holding talks with several vendors," he said.
Babani said the group is going to focus more on re-exports. At present, 25 per cent goes for re-exports and 75 per cent of goods are sold locally.
The main re-export markets are India, Tanzania, East Africa, Uganda and other Gulf countries.
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