Moser Baer India expects next-generation optical disc storage media format Blue-ray to be a ‘key factor’ in reviving the growth of the optical business.
High-definition storage format expected to sell 200 million units by 2009
NEW DELHI: New Delhi-based optical storage device maker Moser Baer India expects next-generation optical disc storage media format Blue-ray to be a ‘key factor’ in reviving the growth of the optical business.
The optical media business is going through severe pricing pressures due to a difficult supply-demand scenario after the royalty dispute between Philips and Moser’s Taiwanese competitors led to overcapacity.
But Moser Baer’s group capital markets chief Tarun Jaitly believes that the surging demand for Blue-ray discs, which are costlier than CDs and DVDs with similar dimensions, will trigger growth in this segment.
“From the pricing perspective, Blue-ray seems poised for growth. There is only one product on the horizon for this format. It’s only Blue-ray now as Toshiba has dropped HD DVD production,” Jaitly told DNA Money.
A dual layer Blue-ray disc can store 50 GB of data, almost six times the capacity of a dual layer DVD.
He added that his firm was “very well” positioned to capture incremental market share in the Blue-ray segment. This segment is expected to sell 200 million units by 2009.
“We have 17%-18% market share in the optical media format. We are expecting similar market share in the Blue-ray business too,” Jaitly added.
Moser Baer expects the optical media business to provide “$70-80 million of cash by next year”, despite the current pricing environment. Jaitly felt the optical media industry was ready for consolidation and fringe players would find it difficult to sustain.
Meanwhile, Moser Baer’s solar cell unit Photo Voltaic is ready to receive funding of $400 million in fiscal 2009 and to ramp up growth through capacity expansion. “This funding could come from internal accruals, listing at a later date and private players,” Jaitly said.
Earlier, Moser Baer had denied plans to list Photo Voltaic at Nasdaq. In October last year, the company raised $100 million for this business from private investors. Its home entertainment business is expecting revenues of $80-100 million by fiscal 2009 from the existing $40 million. The company would invest $100 million into the entertainment unit. “The idea is to look at niche movie and content production. We are not looking at Rs 50-60 crore movies right now,” Jaitly said.
vivek_s@dnaindia.net
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