Consumer electronics company Samsung India Electronics Ltd has approached the Foreign Investment Promotion Board for permission to manufacture and market telecommunications and information technology products, such as mobiles and personal computers, hitherto marketed by Samsung Electronics India Information and Telecommunications Ltd.

Samsung Electronics India Information and Telecommunications Ltd, another wholly-owned subsidiary of South Korean consumer electronics giant Samsung Electronics, was merged with SIEL last month.

Following the merger, the annual turnover of the new entity, Samsung India Electronics Ltd, is expected to touch Rs 5,000 crore (Rs 50 billion) during the year ending December 2003.

Until now, Samsung India was engaged in the manufacturing and marketing of colour televisions and home appliances, such as washing machines, refrigerators, air-conditioners and microwaves.

The other wholly-owned subsidiary, Samsung Electronics India Information and Telecommunications Ltd, had a manufacturing unit for PC colour monitors, with a capacity of 1 million units a year.

It also marketed TFT-LCD monitors, hard disc drives, optical disc drives, laser printers, multi-functional products and mobile phones, including MP3 and code division multiple access phones, which were imported from Samsung's overseas manufacturing units.

The company had permission from the FIPB to import these products through the cash-and-carry wholesale route.

"Since these products were under the ambit of SEIIT, which was merged with SIEL, it was necessary that we inform the government that as a result of the merger the products would be manufactured and marketed by the larger entity," a company spokesperson said.

She said the company had already received the FIPB's nod for the merger.

The existing business structures of the two companies are being retained as separate divisions.

The consumer electronics and home appliance division is targeting a total turnover of Rs 2,800 crore (Rs 28 billion) for the calendar year 2003.

This is a 65 per cent growth target over last year.

Samsung India Electronics, which marketed only consumer durables and home appliances till recently, witnessed a total turnover of Rs 1,215 crore (Rs 12.15 billion) during the first half of 2003, which was 69 per cent higher than the sales of the corresponding period last year.

While consumer electronics accounted for 60 per cent of this figure, home appliances accounted for the balance 40 per cent.