Sony’s Bravia Android TV could become cheaper as local manufacturing starts


Sony India started manufacturing of its BRAVIA television in India under a contract-partnership with Competition Team Technology (India) in Sriperumbudur, Tamil Nadu.

To begin with, Sony will start manufacturing two models, both Android TVs in the initial phase. The first shipment commences from today, 4th August 2015.

The move is likely to make the TVs cheaper as the tax on component import is much lower than that of finished-product imports. Samsung and LG have been making most of their items in India for over a decade.

“In line with the company strategy, the decision to commence local production of BRAVIA television will boost the company’s effort to cater to the overwhelming demand of Sony TVs for the Indian customers. This decision has been taken by Sony post reviewing all aspects of its manufacturing operations, market situation and other factors such as product life cycle, lead-time and costs to ensure that the company remains competitive,” it said.

However, India does not have a single facility to make microchips. So the chips inside these devices have to be imported.

Similarly, India does not produce LCD panels either.

As a result, the value added in India even when an item like a smartphone is manufactured here can be as less as 20%, while it can be as much as 90% for things like ACs and Washing Machines.

Commenting on this development Mr. Kenichiro Hibi, Managing Director, Sony India said, “India has been an important strategic market for Sony and this development underlines our continued commitment to this market as well as our alignment with the Government of India’s ‘Make in India’ program.

“We see huge potential in the TV business as conversion from CRT TV to LCD TV by Indian customers is expected to accelerate over the next few years. There is also very high demand for technologically advanced products such as 4K and our newly launched Android TVs. Keeping in mind this buoyant demand from customers in this market, it is likely that a big chunk of TVs sold in India may originate from this unit in the future.”, he further added.

BRAVIA is the highest selling category and contributes more than 40% to the overall sales of Sony India. With products now being manufactured locally, Sony plans to perfect its TV business operations in India and further strengthen its marketing and distribution channel, the company said.

In FY14 Sony clocked sales of Rs. 10,600 crore in India.