Chennai: Consumer electronics major, Philips India Limited has fired first this time. At a time when other consumer electronic manufacturers are planning to hike the prices of televisions and other consumer electronics, Philips has done the opposite.

The company has upgraded products, slashed the prices of its television and audio models, and has introduced a new financing scheme for its home theatre system. In addition, the company has introduced a new television and audio system model. All the products come with attractive gifts.

According to Suresh Sukumaran, senior general manager, colour televisions, though the offer is a part of sales promotion during the festive Diwali season, the prices may not be hiked after the festival. But the gifts that come with the products now may be withdrawn after Diwali.

The price cut is across segments. At the top end, for instance, Philips'' plasma television, which earlier cost Rs5.5 lakh is now priced at Rs3.99 lakh, with the entry level model being available for Rs2.29 lakh against an earlier price of Rs2.99 lakh. Similarly, the 43-inch projection is now available for Rs74,990, down from Rs84,990. Philips India has also reduced the prices of its large flat screen televisions.

At the popular level the company has launched a 15-inch flat colour television for Rs7,990. "This year the total colour television market will be around 75 lakh units, up from 71 lakh units last year," explains Sukumaran. The market is logging an 8 per cent growth.

According to him, the flat screen segment is what is logging impressive growth vis-a-vis the traditional models. "The real flat segment grew by 35 per cent during the first quarter of this year," he added.

Philips India will spend Rs20 crore on media promotion during the Diwali season.