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Sharp goes in for major revamp

— PHOTO: Ramesh Sharma

Sunil K. Sinha

CHENNAI: Sharp India operations are set for a major rejig, with the top management of Sharp Japan deciding to bring in organisational changes in all its three subsidiaries — Sharp India, Sharp Business Systems (India)and Sharp Software Development India.

Pune-based Sharp India will concentrate on manufacturing only consumer durables. It has already started assembling LCD (liquid crystal display) televisions for which the panels are being made in Japan. This plant will start producing air-conditioners and micro-ovens within a year. At present, only 15 per cent of the space in the plant is being used for the production purpose. This will be expanded by the end of 2012. After expansion, it will supply the products to other Sharp subsidiaries, according to Sunil K. Sinha, Chief Executive Officer of Sharp India operations and Managing Director of Sharp Business Systems.

In an interaction with this correspondent, Mr. Sinha said Sharp Business Systems, based in Delhi, took care of marketing, services and sales of products. This company has tied up with Salora International, also a Delhi-based consumer durable company. Salora will be Sharp's single largest distribution network company. This alliance will give a jump-start for Sharp to enter the Indian market by using the readymade platform provided by Salora. Initially, Salora will be an exclusive business partner for Sharp to sell kitchen appliances. This partnership will spread into other products over a period.

Gopal Jiwarajka, Vice-Chairman and Managing Director of Salora International, said his company had a wide network that enabled it to take up marketing and sales of Sharp products. The company, at present, was handling products in the IT, telecom and consumer electronics space. He said Salora would be launching its own mobile brand next month, which would be catering to low-end market. Bangalore-based Sharp Software Development, engaged in developing document systems, will provide the same resource for the whole company. The software will not be limited to Indian subsidiaries. It will provide the service to all its group companies across the globe. Following the revamp, Mr. Sinha said, the managing directors of all the three companies would be reporting to him. This was the first time that Sharp had appointed a non-Japanese chief for India, he said.

Sharp had 40 per cent market share for television and it was the leader in refrigerator, micro-oven, LCD televisions and washing machines in Japan. But that was not the case in India. The company had now decided to handle the production of television, refrigerators and air-conditioners by itself and have a third-party agreement with other business partners for other products. This concept, he hoped, would build a strong brand awareness and business partnerships.

Currently, Sharp had plants for air-conditioners and refrigerators in Thailand, for LCD televisions in India, Malaysia, Europe and the U.S. and it was having factories in Osaka in Japan for its high-end products, which was not disturbed by the recent natural calamity, he said.

Mr. Sinha said his company had entered into a partnership with L&T for a turnkey EPC (engineering, procurement and construction) megawatt solar project to construct 100 MW in the next 12 months in most of the metros. Total project turnover would be Rs. 1,300 crore. Under this agreement, L&T would commission and execute the solar project for various independent power plant producers while Sharp would be the technology partner.

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