Monday, June 19 2006 10:27 Hrs (IST) - World Time -

New Delhi: Sahara Computers and Electronics Ltd (SCEL), a joint venture between South Africa's Sahara Computers Ltd and the Sahara India Pariwar, could soon offer laptops for below Rs.25,000.

"Laptops with a price tag of less than Rs.25,000 is not a remote possibility any more, as the average cost of production has come down drastically over the years due to growing sales volumes in the Indian market," SCEL chief operating officer George Van Der Merwe told sources.

"It is not the cost but the taxes that are compelling us to price the laptops slightly above Rs.25,000. If the government can liberalise the tax structure a bit, sub-25k notebooks are a real possibility," Merwe said.

"However, with growing sales volumes, SCEL is looking at the possibility of breaking the barrier," he added.

SCEL has already announced its intent to invest Rs.4 billion ($87 million) in the Indian market over the next couple of years with a major focus on small cities and towns.

"We think the future lies in smaller towns and cities, where a huge untapped market exists. SCEL is focusing on that in a big way," Merwe explained.

As part of its marketing strategy, the company has also introduced a range of consumer electronics products in the Indian market.

"We are also looking at a greater share in the tablet PC market, which is expanding at a rapid pace. Its size may not be that big but it has great potential and we already have a strong foothold in this market," Merwe added.

According to him, despite hardware prices tumbling, there was no price war among major players in the market.

"The Indian market is so big that there is room for everyone," he maintained.