Production And Material Management

Onida
is one of India's leading electronics brands, established as "MIRC Electronics" in 1981.

Onida is a popular electronics brand in India. Onida has a network of 33 branch offices, 208
Customer Relation Centers and 41 depots spread across India. As on 31 March 2005, Onida had a
market capitalization of Rs.301.46 crore.

Mirc Electronics won an “Award for Excellence in Electronics” in 1999, from the Ministry
of Information Technology, Government of India.

Onida with its Sales & Marketing office in Dubai reported a 215 per cent export growth in
two years, setting the base for an increased robust international presence.

The shipments to the Gulf contribute almost 65 per cent of Onida's export revenue, while
shipments to the fast growing East African market (Uganda, Tanzania, Kenya and Ethiopia) and the
SAARC countries accounted for 16 per cent of export revenues.

Home Theatres and DVD players have been introduced in these markets to strengthen the
Onida brand presence. These products have customized models with local language user interfaces
in line with its geographies of focus. Onida models are now available with Arabic, Persian and
Russian OSD (menu).

In addition to the Gulf countries ONIDA has now a sizeable presence in Russia, Ukraine
and neighboring CIS countries. ONIDA has already crossed 100000 mark in CTV exports to Russia
in a span of just 2 years and plans to grow in these markets at a much faster pace.

Apart from Television Exports to Russia, Onida also exports DVD Players and High end
LCD Televisions

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Company History
Onida was started by G.L. Mirchandani and Vijay Mansukhani in 1981 in Mumbai. In 1982, Onida
started assembling television sets at their factory in Andheri, Mumbai. Since then, Onida has
evolved into a multi-product company in the consumer durables and appliances sector. Onida
achieved a 100% growth in ACs and microwave ovens and a 40% growth in washing machines last
year. ONIDA came out with the famous caption "Neighbour's envy, Owner's Pride", another
popular theme of the ads was a devil complete with horns and tail. The devil was replaced by a
married couple- Siddharth and Ritu.

To think of the future, you need to think of your past.

It all began with just a vision. In the year of 1981, Mr. GL Mirchandani and Mr. Vijay Mansukhani
started a company called Onida with just a goal of manufacturing television sets and going beyond
convention. By the end of that year, we started assembling television sets at our factory in Andheri,
Mumbai. With the passage of time, superior products and the combination of a distinctive voice, a
cutting-edge advertising strategy, and purposeful marketing ensured that Onida became a
household name.

It wasn’t about consumer electronics. It was always about the consumer.

What really sets Onida distinct from others is that we have always tried to pave our own road and
create a niche by understanding what exactly does the consumer need. What is it that others are not
offering?
Then we asked some more questions:
1. Is there an inherent consumer need that is not being met by the current products in the
market?
2. Is there anything we can significantly add, upon entering the category?
3. Is there something that the other product players have overlooked, which we can address? 

Only when do we have an affirmative answer on any of the above, do we work on the offerings.
Thus, when we say, our products are different; we are so because we cater to something that others
do not.
 
Some of the innovations that surprised the world.
 
After having established a reputation for being an intelligent and pioneering innovator in the
application of technologies: we were the first to launch the Webcruiser TV, the world’s first built-
in Internet TV which offers the benefits of a personal computer and a TV, and that too, equipped
with a a modem, printer port and a cordless keyboard with it; the first to launch the ultimate in Flat
TV technology with Onida Black with a high picture clarity with DVMC which ensures uniform
scanning at the centre and corners of the TV screen.
 
Again, the Onida Twister was the first TV that turned to face the viewer; we were the first to
introduce SRS technology for surround sound in Audioport. In 1999, we were the first to introduce

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the pure flat TV in the country. The Candy was the first instance of any brand providing a multi-
coloured cabinet option to its customers.
 
It still wasn’t enough.
 
The common perception was that we were a focused TV manufacturer. But then with a knack for
spotting a gap in the market, we realised that there were undiscovered needs and wants in other
categories of consumer durables as well. So we recognized latent synergies which enabled us to
provide customers with a wider range of products under the ONIDA brand.
 
Washing Machines:
 
In 2003-04 we launched the washing machine with Hydrofall technology which addressed the need
of having a more powerful cleaning system. Then we realised that people still used their hands for
cleaning so we launched the Triomatic technology which gives the perfect hand wash. Then we
realised that people still keep bending to wash clothes so we launched a washing machine with a
higher and wider vent so you don’t have to bend.
 
Air conditioners:
 
With the soaring summer heat, we saw a need for an AC with powerful cooling. And in addition
due to the raising electricity consumption, the need for energy efficiency as well. Hence, the
thought of an ultra slim powerful AC with unique APM cooling technology that cools even at 48oc
and is the most energy efficient in the country which constantly keeps your electricity bills in
check.
 
DVDs:
 
With today’s technology boom, there’s a need for a single multimedia interface as most people
now download movies, music and click pictures through mobiles. Hence the need for USB and
card reader. We also saw that most DVDs are rented hence are scratched. Which is why, we
developed a DVD player with USB and Card Reader which also play scratched discs effortlessly.
 
Microwave Ovens:
 
We saw that people used Microwave primarily to heat food and not to cook. We also noticed that
it’s difficult to cook food in a microwave. Especially Indian food. So to make cooking simpler we
introduced 123 Indian autocook menus. So all you need to make Indian dishes is a finger. We later
gave it a sleek, black look with a mirror finish so that it looks stunning too.
 
LCDs:
 
What began as a TV became the window to the future. With the advent of television’s increasing
popularity, there were many players with a wide foray of our models. To make matters interesting,
there were several foreign players with technology that seemed futuristic and with a sleek look.
However we mainly focused on picture clarity. So instead of just aping what the offering was, we
asked ourselves, ‘Why not give a complete audio / video experience at home as well?’ And the
result was obvious: Our CTV had up to 3500 Watts of sound. This was our first milestone which
others followed. However, this held true twenty years later as well. LCD technology came in, in a
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bigger way. Onida once again took the onus to remind everyone, that sound is equally important to
complete the viewing experience. So we made our Xaria with more than twice the sound output of
other LCDs in the market.
 
Then later on, we got onto its drawing board a pseudo home theatre with a 5.1 amplifier system
and 1000-watt PMPO speakers, thereby putting a theatre’s soul inside a TVs body.
 
We took the future by its horns and went on to make India’s first fully developed indigenised Xaria
LCD with more than twice the sound output of other LCDs in the market.
 
Mobiles:
 
With the cellphone market already heavily penetrated, there was a need for a mobile that could
stand apart. So what we sought to do was make every single Onida Mobile do so much more than
what an ordinary cellphone does. So the moment you turn it on, you would realise that it’s fully-
loaded. So many features. So many things. And so easy. But all these features are there in it for a
reason. All of them to help you do better, enjoy better, listen better, work better or simply talk
better.
 
 

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Vision and Mission

The core of the thought.

Vision
To build a brand around substance. To communicate simple truths that customers understand. To
become a leader in our chosen field and become a globally recognized, prestigious company
through synergistic businesses investment, differentiation through innovation, passion through
empowerment, cost through economies of scale and world class systems and procedures that bring
in a sense of delight to our stakeholders.

Mission
To benefit society at large through Innovation, Quality, Productivity, Human Development and
Growth, and to generate sustained surpluses, always striving for excellence, within the framework
of law and in nothing but the truth in which we base our every action.

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Corporate Philosophy
To think about you, we first think about everything.

Commitment to society/nation

We respect the society and the environment to which we belong and will contribute to its progress
and welfare.

Passion for quality

Strive to create products with substance that are the best in class. Never compromise on quality.
Give our customer better value-for-money, always.

Fairness
We stand for truth, fairness and justice in all our business and individual dealing - without this
spirit, no man can win respect no matter how capable he may be.

People - our greatest assets

We value good people. It is our responsibility to create actively and constantly an environment that
supports them to grow and flourish.

Harmony and co-operation

Alone we are weak. Together we are strong. Work together as a family in mutual trust and
responsibility.

Courtesy and Humility

Respect the right of others. Be cordial, modest and humble. Praise and encourage freely.

Strive for continuous improvement ( KAIZEN )

Seek and find in every action a way to do things better, always better.

Growth
Growth is vital. Increasingly seek out ways and means to constantly move forward.

Innovation
Progress by adjusting to ever-changing environment around us. As the world moves forward, we
must keep-in-step.

Gratitude
Always repay the kindness of our customers, associates, community, nation and friends worldwide
with gratitude.

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Management
Meet the thinkers.
 
Mr. Gulu Mirchandani (Chairman & Managing Director)
Mr. Vijay Mansukhani (Managing Director)
Mr. G. Sundar (Chief Executive Officer)
Mr. Satrajit Ray (Chief Financial Officer)
Mr. Vikas Shirodkar (Chief People Officer)
Mr. C. R Talati (Vice President - Operations)
Mr. Sriram Krishnamurthy (Vice President - Marketing, Sales & Service)

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The Jewel for your living room: 32 Diamond Full HD LCD TV comes with a stunning design,
crystal clear sound and unparallel picture quality of Full HD 1080P resolution. Now, enjoy the
most fulfilling entertainment with realism & richness that you have ever experienced.

When we saw you with an Ultra Slim TV, we saw your dissatisfaction for low sound output. So we
launched Onida Ultra Slim Thunder which comes with a woofer base and has the most powerful
sound in the category; with a vast range including UltraSlims and Flat TVs.

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Only UltraSlim TV with a Home Theatre Woofer Base: Most ultra slim TVs are slimmer but
inherently have a low sound output. So we launched Onida UltraSlim Thunder which comes with a
home theatre bar and has the most powerful sound in the category. The Onida UltraSlim TV range
not only has powerful sound but is aesthetically good looking, has superior picture quality and is
loaded in features that will take your breath away.

With a multimedia player: Today's day & age requires you to capture video on their camcoders,
digital camera and mobiles. The Onida Atom, a touch screen high definition multimedia player
with Card Reader & USB port. It directly plays movies, music and pictures through your
camcorder, camera, USB & mobiles.

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Instant Cooling, No Waiting. The New ONIDA 2010 Range of Air Conditioners is designed to
provide Instant Cooling in peak summer when it is needed the most. Onida ACs have high energy
efficiency and heavy duty cooling due to its advanced design of large multi bend cooling coils,
highly efficient compressors and high air throw. Only ONIDA ACs have unique and advanced
features like i-cool, Actual Savings Meter, One Touch AC & Fan Auto control, Large Display &
Biosleep with 3 stage control.

India's most convenient High front loading fully automatic washing machine: A front loading
washing machine gives the best wash quality but requires bending while washing clothes. Onida
high front loading washing machine has a wider & taller drum for superior cleaning. It's India's
Slimmest high front loading washing machine.

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Be a multi cuisine chef at the touch of a button: Onida Black Beauty microwave comes with Indian
Auto cook menu which makes cooking so simple even your husband can become a multi cusine
chef at the touch of a button.

Onida brings you the range of FULLY LOADED mobiles. Every single Onida Mobile has so much
more to offer as compared to any ordinary cellphone. It has so many features yet it's so easy to use.
So now you can enjoy better, work better or simply talk better. Experience it yourself.

Projectors and Display Products

Onida offers a wide range of stylishly crafted presentation

devices, each of which has been customised to suit a
particular type of application - be it for the home or office.
Combining the finest in projection, magnification and visual
display technology, these systems ranging from portable
multimedia projectors and compact desktop visualisers to
Plasma Display panels and giant video walls will ensure that
every screening or presentation will keep the audience
engrossed. And leave them with memories of a superlative
visual experience.

Infocus Multimedia Projectors 

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Onida is the only company in India which has the widest range of projectors that use the most
contemporary technologies.
This is due to the co-branding arrangements with Infocus Corporation USA, world leaders in LCD
& DLP projectors.

LCD TV 
Fresh colors, clear, distinct, original as fresh as you see in real life.
Now on your LCD Tv. Onida Lexini Tvs are equipped with Ultra
Luminance Technology that ensures fresh colors. With beauty at its
best and performance at its peak, Onida Lexini is a statement and
not just a possession.

Visual Presenters 
For projecting 3D objects to printed matter, transparencies and 35 mm
slides, the Visual Presenter is the most versatile presentation
equipment to have. 

With connectivity to monitors as well as multimedia projectors, ideas and images can be
communicated on a large screen in a wide range of environments like class rooms, conference
halls, image capturing and video conferencing.

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Air Conditioner

Background
Residential and commercial space-cooling demands are increasing steadily throughout the world as
what once was considered a luxury is now seemingly a necessity. Air-conditioning manufacturers
have played a big part in making units more affordable by increasing their efficiency and
improving components and technology. The competitiveness of the industry has increased with
demand, and there are many companies providing air conditioning units and systems.

Air conditioning systems vary considerably in size and derive their energy from many different
sources. Popularity of residential air conditioners has increased dramatically with the advent of
central air, a strategy that utilizes the ducting in a home for both heating and cooling. Commercial
air conditioners, almost mandatory in new construction, have changed a lot in the past few years as
energy costs rise and power sources change and improve. The use of natural gas-powered industrial
chillers has grown considerably, and they are used for commercial air conditioning in many
applications.

Raw Materials
Air conditioners are made of different types of metal. Frequently, plastic and other nontraditional
materials are used to reduce weight and cost. Copper or aluminum tubing, critical ingredients in
many air conditioner components, provide superior thermal properties and a positive influence on
system efficiency. Various components in an air conditioner will differ with the application, but
usually they are comprised of stainless steel and other corrosion-resistant metals.

Self-contained units that house the refrigeration system will usually be encased in sheet metal that
is protected from environmental conditions by a paint or powder coating.

The working fluid, the fluid that circulates through the air-conditioning system, is typically a liquid
with strong thermodynamic characteristics like freon, hydrocarbons, ammonia, or water.

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Design
All air conditioners have four basic components: a pump, an evaporator, a condenser, and an
expansion valve. All have a working fluid and an opposing fluid medium as well.

Two air conditioners may look entirely dissimilar in both size, shape, and configuration, yet both
function in basically the same way. This is due to the wide variety of applications and energy
sources available. Most air conditioners derive their power from an electrically-driven motor and
pump combination to circulate the refrigerant fluid. Some natural gas-driven chillers couple the
pump with a gas engine in order to give off significantly more torque.

As the working fluid or refrigerant circulates through the air-conditioning system at high pressure
via the pump, it will enter an evaporator where it changes into a gas state, taking heat from the
opposing fluid medium and operating just like a heat exchanger. The working fluid then moves to
the condenser, where it gives off heat to the atmosphere by condensing back into a liquid. After
passing through an expansion valve, the working fluid returns to a low pressure

All air conditioners have four basic components: pump,

evaporator, condenser, and expansion valve. Hot refrigerant
vapor is pumped at high pressure through the condenser,
where it gives off heat to the atmosphere by condensing
into a liquid. The cooled refrigerant then passes through the
expansion valve, which lowers the pressure of the liquid.
The liquid refrigerant now enters the evaporator, where it
will take heat from the room and change into a gaseous
state. This part of the cycle releases cool air into the air-
conditioned building. The hot refrigerant vapor is then
ready to repeat the cycle.

state. When the cooling medium (either a fluid or air)

passes near the evaporator, heat is drawn to the evaporator.
This process effectively cools the opposing medium, providing localized cooling where needed in
the building. Early air conditioners used freon as the working fluid, but because of the hazardous
effects freon has on the environment, it has been phased out. Recent designs have met strict
challenges to improve the efficiency of a unit, while using an inferior substitute for freon.

The Manufacturing
Process

Creating encasement parts from galvanized sheet metal and

structural steel

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 1 Most air conditioners start out as raw material, in the form of structural steel shapes and
sheet steel. As the sheet metal is processed into fabrication cells or work cells, it is cut,
formed, punched, drilled, sheared, and/or bent into a useful shape or form. The encasements
or wrappers, the metal that envelopes most outdoor residential units, is made of galvanized
sheet metal that uses a zinc coating to provide protection against corrosion. Galvanized
sheet metal is also used to form the bottom pan, face plates, and various support brackets
throughout an air conditioner. This sheet metal is sheared on a shear press in a fabrication
cell soon after arriving from storage or inventory. Structural steel shapes are cut and mitered
on a band saw to form useful brackets and supports.

Punch pressing the sheet metal forms

 2 From the shear press, the sheet metal is loaded on a CNC (Computer Numerical Control)
punch press. The punch press has the option of receiving its computer program from a
drafting CAD/CAM (Computer Aided Drafting/Computer Aided Manufacturing) program
or from an independently written CNC program. The CAD/CAM program will transform a
drafted or modeled part on the computer into a file that can be read by the punch press,
telling it where to punch holes in the sheet metal. Dies and other punching instruments are
stored in the machine and mechanically brought to the punching arm, where it can be used
to drive through the sheet. The NC (Numerically Controlled) press brakes bend the sheet
into its final form, using a computer file to program itself. Different bending dies are used
for different shapes and configurations and may be changed for each component.
 3 Some brackets, fins, and sheet components are outsourced to other facilities or companies
to produce large quantities. They are brought to the assembly plant only when needed for
assembly. Many of the brackets are produced on a hydraulic or mechanical press, where
brackets of different shapes and configurations can be produced from a coiled sheet and
unrolled continuously into the machine. High volumes of parts can be produced because the
press can often produce a complex shape with one hit.

Cleaning the parts

 4 All parts must be completely clean and free of dirt, oil, grease, and lubricants before they
are powder coated. Various cleaning methods are used to accomplish this necessary task.
Large solution tanks filled with a cleaning solvent agitate and knock off the oil when parts
are submersed. Spray wash systems use pressurized cleaning solutions to knock off dirt and

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grease. Vapor degreasing, suspending the parts above a harsh cleansing vapor, uses an acid
solution and will leave the parts free of petroleum products. Most outsourced parts that
arrive from a vendor have already been degreased and cleaned. For additional corrosion
protection, many parts will be primed in a phosphate primer bath before entering a drying
oven to prepare them for the application of the powder coating.

Powder coating

 5 Before brackets, pans, and wrappers are assembled together, they are fed through a
powder coating operation. The powder coating system sprays a paint-like dry powder onto
the parts as they are fed through a booth on an overhead conveyor. This can be done by
robotic sprayers that are programmed where to spray as each part feeds through the booth
on the conveyor. The parts are statically charged to attract the powder to adhere to deep
crevices and bends within each part. The powder-coated parts are then fed through an oven,
usually with the same conveyor system, where the powder is permanently baked onto the
metal. The process takes less than 10 minutes.

Bending the tubing for the condenser and evaporator

 6 The condenser and evaporator both act as a heat exchanger in air conditioning systems
and are made of copper or aluminum tubing bent around in coil form to maximize the
distance through which the working fluid travels. The opposing fluid, or cooling fluid,
passes around the tubes as the working fluid draws away its heat in the evaporator. This is
accomplished by taking many small diameter copper tubes bent in the same shape and
anchoring them with guide rods and aluminum plates. The working fluid or refrigerant
flows through the copper tubes and the opposing fluid flows around them in between the
aluminum plates. The tubes will often end up with hairpin bends performed by NC benders,
using the same principle as the NC press brake. Each bend is identical to the next. The
benders use previously straightened tubing to bend around a fixed die with a mandrel fed
through the inner diameter to keep it from collapsing during the bend. The mandrel is raked
back through the inside of the tube when the bend has been accomplished.
 7 Tubing supplied to the manufacturer in a coil form goes through an uncoiler and
straightener before being fed through the bender. Some tubing will be cut into desired
lengths on an abrasive saw that will cut several small tubes in one stroke. The aluminum
plates are punched out on a punch press and formed on a mechanical press to place divots or

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waves in the plate. These waves maximize the thermodynamic heat transfer between the
working fluid and the opposing medium. When the copper tubes are finished in the bending
cell, they are transported by automatic guided vehicle (AGV) to the assembly cell, where
they are stacked on the guide rods and fed through the plates or fins.

Joining the copper tubing with the aluminum plates

 8 A major part of the assembly is the joining of the copper tubing with the aluminum plates.
This assembly becomes the evaporator and is accomplished by taking the stacked copper
tubing in their hairpin configuration and mechanically fusing them to the aluminum plates.
The fusing occurs by taking a bullet, or mandrel, and feeding it through the copper tubing to
expand it and push it against the inner part of the hole of the plate. This provides a thrifty,
yet useful bond between the tubing and plate, allowing for heat transfer.
 9 The condenser is manufactured in a similar manner, except that the opposing medium is
usually air, which cools off the copper or aluminum condenser coils without the plates.
They are held by brackets which support the coiled tubing, and are connected to the
evaporator with fittings or couplings. The condenser is usually just one tube that may be
bent around in a number of hairpin bends. The expansion valve, a complete component, is
purchased from a vendor and installed in the piping after the condenser. It allows the
pressure of the working fluid to decrease and re-enter the pump.

Installing the pump

 10 The pump is also purchased complete I h from an outside supplier. Designed to increase
system pressure and circulate the working fluid, the pump is connected with fittings to the
system and anchored in place by support brackets and a base. It is bolted together with the
other structural members of the air conditioner and covered by the wrapper or sheet metal
encasement. The encasement is either riveted or bolted together to provide adequate
protection for the inner components.

Quality Control

Quality of the individual components is always checked at various stages of the manufacturing
process. Outsourced parts must pass an incoming dimensional inspection from a quality assurance
representative before being approved for use in the final product. Usually, each fabrication cell will
have a quality control plan to verify dimensional integrity of each part. The unit will undergo a

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performance test when assembly is complete to assure the customer that each unit operates
efficiently.

The Future

Air conditioner manufacturers face the challenge of improving efficiency and lowering costs.
Because of the environmental concerns, working fluids now consist typically of ammonia or water.
New research is under way to design new working fluids and better system components to keep up
with rapidly expanding markets and applications. The competitiveness of the industry should
remain strong, driving more innovations in manufacturing and design.

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Brand Line - Interview

‘Onida gets younger over time’

Gulu Mirchandani, Chairman and Managing Director of Mirc Electronics, speaks to BrandLine

Consumers buy an Onida product despite having a wide array to choose from. So, brand loyalty is
still very much alive.

The Onida devil’s recent avatar

R. Ravikumar

Onida, which once had an enviable share (over 15 per cent) of the Indian market for television sets,
is one of the very few home-grown consumer electronics brands to have weathered the onslaught of
Korean and Japanese players and retain a d ouble-digit market share.

Gulu Mirchandani, a mechanical engineer from BITS Pilani, along with brother Sonu Mirchandani
and brother-in-law Vijay Mansukhani, promoted Mirc Electronics to make televisions under the
Onida brand. Prime Minister Rajiv Gandhi had then ope ned up imports so that India could watch
the 1982 Asian Games on imported TVs, and Jumbo’s Manu Chabbria seized the opportunity to
flood India with Sony exports from Dubai. It was not until the mid-1980s that the brand’s fortunes
turned. Its advertising campaign – a devil and the tagline, ‘Neighbor’s Envy, Owner’s Pride’, did
the magic. The brand outperformed not only many Indian players but even overtook global brands.

Of late, the devil (younger and more modern) is back with a thud. Apart from CTVs, the company’s
portfolio now contains air-conditioners, DVD players, washing machines and microwave ovens.

The brand still retains its premium position in the CTV market with 12 per cent share. CTV
contributes about 60 per cent of the company’s revenues with other appliances contributing the
rest.
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Today’s market is different from that of a decade ago. More disposable income, better brand
awareness, more demand for products with improved features … How does Onida fit in?

Onida as a brand has grown stronger owing to its robust designs, stringent quality standards and
customer focus. There is always freshness and vibrancy attached to it and we feel it is a brand that
is growing younger over a period of time. We have always been about giving the consumer an
over-engineered product so that he gets the maximum value and therefore Onida is always relevant
to the consumer and to the market.

Apart from established players such as Samsung, LG, Panasonic, Sony, there are a lot of
private labels coming up in the market. Retailer Vivek’s has its own TVs and DVD players,
and Reliance has similar plans. What would be your mark eting strategy given this scene?

The market is big and growing for all players to grow. We carved a niche, which will sustain us in
the future too. Additionally, we believe the company needs constant innovation to offer more value.
Customers are intelligent and are willing to pay for new designs, latest features and after-sales
service support. We could also make specific designs under the Onida brand and offer to large-
format retailers. We do not envisage any difficult in selling to them.

Where does the brand Onida stand now in the market?

Ranking in terms of market share for May 2007, according to ORG/GFK figures, is No 3 in the
CTV market (Onida – 9.6 per cent share, IGO – 2.9 per cent); in DVD - No 3 (with 10 per cent
share); washing machines - No 5 (4.4 per cent); air-conditioners - No 3 (with 7.9 per cent) and
microwave ovens, we are No 5 with 6.9 per cent share.

Our aim is to grow strongly in the CTV category with a 16 per cent market share target for the year
2007-08, and our focus will be on the 21” and 29” flat segment.

Onida was also present in the audio segment for a brief while.

We have a presence in the HTS (home theatre system) segment and are in the process of
consolidating before launching a fresh set of offerings.

What’s your turnover target for the current fiscal and are you on track to achieve that?

We closed fiscal 2006-07 with a revenue of Rs 1,650 crore. Our target for the year 2007-08 is
upwards of Rs 2,000 crore, and we are on track to achieve it due to the tremendous success of our
air-conditioners and strong marketing support for all other products.

Any plans to penetrate new markets?

Globally, we are strengthening our presence in the Gulf. Domestically, we are increasing our
presence in all product categories. We are also partnering upcoming organised retailers and
strengthening our dealer network in both urban and rural markets. Our marketing spend this year
will be around Rs 80 crore.

What is your manufacturing model?

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We have a mixed model and effectively use both in-house and outsourced facilities for
manufacturing. We have three facilities for end-to-end operations at Wada, near Mumbai; one at
Noida and one near R oorkee in Uttaranchal.

Are you planning to expand your portfolio through new product lines or new variants in the
existing portfolio?

A new range of microwaves is being launched this year. However, the focus will be on our new
range of LCD TVs which will be launched later this year. This has been developed indigenously
with Rs 100-crore spend on a dedicated production line and R&D. However, we will still import
panels from LG and Samsung.

Onida has already launched the slim series of air-conditioners and ultra slim TV this year. Very
soon, we will be introducing a 29” slim and 21” ultra-slim model, catering to the rapidly emerging
slim TV segment. We will also launch a new range of fully automatic washing machines.

What’s the present brand recall in the market?

Our brand recall among our target audience is among the top three. In terms of top-of-the-mind
recall, our score is 10 (while LG is at 38 and Samsung is at 12).

India is a price-sensitive market. While some brands target volume, some target value.
What’s Onida’s choice?

Which market is not price-sensitive? Is Wal Mart’s success not proof enough that even the US is?
Actually, India is a value-sensitive market. Onida has always catered to this market, and will
continue to do that.

S.Y.BMS Div: “B” Roll No.:79 Page 21

 Production And Material Management

Bibliography
_______________________________________________
Web Sites Referred

 http://www.onida.com/

 http://www.truthatonida.com/

 http://en.wikipedia.org

 http://en.wikipedia.org/wiki/Onida_Electronics#History

 http://en.wikipedia.org/wiki/Onida_Electronics#Onida_Today

 http://en.wikipedia.org/wiki/Onida_Electronics#Products

 http://www.Madehow.com

 http://business.rediff.com/report/2009/sep/07/onida-to-say-goodbye-to-its-devil.htm

 http://www.truthatonida.com/beta/products/products.asp

 http://www.truthatonida.com/beta/aboutus/aboutus.asp

 http://www.list-of-companies.org/Details/10351159/India/MIRC_Electronics_Limited/

 http://www.indiainfoline.com/Research/LeaderSpeak/Interview-of-Mr.-Gulu-Mirchandani-

Chairman-and-MD-Mirc-Electronics/11992134

News Papers Referred

 The Economic Times

 Business Standard

 Times of India

Books Referred

 Production Management & Material Management

 Licy Verghes
S.Y.BMS Div: “B” Roll No.:79 Page 22