TCL India to foray into brown goods market

TCL India Holdings, fully owned subsidiary of Chinese multinational TCL Corporation, is entering the small appliances (brown goods) market to expand its product bouquet in India.

In less than three months, the company will be launching new products such as rice cookers, standing fans, hot blowers, water dispensers while expanding the existing range of induction cookers, ice makers and other durable products.

"There is a huge potential in the small appliances segment with a healthy demand for rice cookers, standing fans, water dispensers and so on," said C M Singh, chief executive, TCL India.

But dealers claim that TCL has made a smart move because a majority of the brown goods shoppers prefer Chinese products.

Singh added that TCL India would initially source the products from the parent company in China and then depending upon the volume growth it will introduce new products and manufacturing in India.

TCL has allotted a significant ad budget of Rs 40 crore for below the line and above the line marketing activities. The company is also expanding its retail network by launching 50 exclusive outlets by March 2007.

TCL is also introducing 10-12 models of LCD televisions by end of January. Singh further added, "We are bullish about the first quarter of the next year as along with conventional products such as air conditioners and washing machines, the company expects the colour televisions to drive growth due to the forthcoming cricket world cup."

In the current calendar year TCL India registered a volume turnover of Rs 450 crore and the company expects to reach Rs 700 crore by next year.