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Videocon to step up set-top box production

India's Videocon Industries is to establish a new set-top box (STB) manufacturing facility by the end of 2014 with an annual capacity of one million units.

Anirudh Dhoot, director, Videocon Industries, told PTI the facility is likely to be in Punjab or Madhya Pradesh. His company also operates the Videocon d2h direct-to-home (DTH) satellite TV platform.

With the ongoing mandatory digitisation of India's cable television network, the total demand for STBs is estimated to be around 60 million units in 2014, says the Consumer Electronics and Appliances Manufacturers Association (CEAMA).

Dhoot says that his company has witnessed a huge hike in demand. In October 2013, the production capacity of Videocon's existing STB plant rose from 700,000 to one million, according to PTI.

The Indian Government has provided an incentive for domestic STB producers to upscale after imposing a 10% import duty on foreign STBs in the 2103-2014 Union Budget, up from 5% on the previous year.

Noida-based Dixon Technologies and Kortek Electronics also manufacture domestic STBs; however foreign manufacturers still reportedly accounted for 95% of the STBs seeded in the first two phases of cable TV digitisation. Phase III and IV are scheduled to be completed by 31 December 2014, although a delay is widely anticipated.

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