Samsung India revenue crosses $10-billion in 2018-19
n the flagship mobile phone business, Samsung India revenue increased by 15.4% at Rs 43,087.9 crore in FY19 as compared to Rs 37,349.7 crore in FY18…
Samsung Electronics surpassed the $10-billion revenue mark in the Indian market in 2018-19 with the company continuing to grow its bread-and-butter mobile phone revenues despite the Chinese competition eating away market share. In fact, Samsung India also retained the top slot of largest mobile phone maker in India by revenue in FY19.
As per latest regulatory filings made to Registrar of Companies (RoC), the South Korean technology giant’s India revenue grew by 19.7% in FY19 at Rs 73,085.9 crore as compared to Rs 61,065.6 crore it had clocked in FY18.
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India DigiPlus Awards 2020 – Rewarding Brilliance in Digital Marketing In the flagship mobile phone business, Samsung India revenue increased by 15.4% at Rs 43,087.9 crore in FY19 as compared to Rs 37,349.7 crore in FY18.
In contrast, ace competitor Xiaomi, which is the largest by market share, clocked sales of Rs 35,426.92 crore. Analysts attributed this to the fact that Samsung has a presence across price points, including the premium segment, where Xiaomi has no presence till now, thereby the Korean giant has higher sales realization.
Samsung India revived its pace of overall sales growth in India by launching online exclusive smartphones and televisions at aggressive pricing forsaking margins to take on the Chinese competition led by Xiaomi, Oppo, Vivo, Realme and OnePlus. In FY18, Samsung Electronics India’s sales had grown by 10%.
However, the foray into low margin products and price war with Chinese also took its toll on Samsung India bottom line with the company posting 58% drop in net profit to Rs 1540.1 crore in FY19 as compared to net profit of Rs 3712.7 crore in FY18. This is the second consecutive year that Samsung India’s profit declined from a peak of Rs 4156.2 crore in FY17.
“Samsung India continues to have year-on-year growth despite facing competition from Chinese incumbents. The company can, however, have more leverage to gain, even more market share and prevent others from establishing in the market,” said Mayank Sharma, co-founder at Veratech Intelligence, which analyses the financials for ET.
Sharma said Xiaomi’s current growth path will lead to Samsung ceding even greater market share. “However, the falling consumer spending in India will have a greater impact on Xiaomi than on Samsung due to its razor thin margins,” he said.
As per market tracker International Data Corporation (IDC), Samsung has lost share in the Indian smartphone market in the current fiscal. In the quarter ending September, its smartphone share declined to 18.9% as compared to 22.6% in the same period of 2018.
Three of China’s BBK Electronics group brands –Vivo, Realme and Oppo – had gained maximum share in this period.
As per RoC filings, Samsung India also grew its television sales which grew by 11% in FY19 at Rs 5015.7 crore as compared to Rs 4512.8 crore in FY18. Sales of home appliances like refrigerators, air-conditioners and washing machines too went up by 10% to Rs 7408.2 crore.
In the director’s report, Samsung India said the company “has completed 24 strong and successful years in India growing from a one-room, two-employee start-up to the country’s biggest and most loved and trusted consumer brand.”
Samsung in the report said it has maintained the leadership position in the television category, overall refrigerators along with frost free and side-by-side categories. It is the fastest growing brand in front load washing machine category, it said.
