Daewoo Electronics may set up colour TV facility

South Korea's Daewoo Electronics Company has entered into talks with the Kolkata based JDS Technologies to set up a colour television (CTV) assembly unit in the city.

"Talks are at a final stage and we expect to clinch a deal in the next one month," explained, Dilip Chatterjee, managing director, JDS Technologies.

The deal being worked out would involve a market survey to find out demand for its product in the eastern region which would be followed by marketing of Daewoo TVs in the region.

"After we have received a feel of the market in the region would we initiate production of Daewoo TVs here and the capacity installed would depend on the feedback," Chatterjee said.

JDS has the requisite expertise in terms of assembling and manufacturing TVs because it has an existing setup where it manufactures and markets CTVs under the brand name 'Ivision'.

The company has also tied-up with Grundig of Germany for assembling CTVs.

Plans being firmed up include assembling at least 3,000 TV sets per months to begin with.

"We are involved in talks with Daewoo for firming up investment plans for the plant. At present JDS is exploring various investment possibilities with Daewoo. This involves investment through joint venture, or sharing of labour cost," Chatterjee said.

Picture tubes and other components would be sourced from China while smaller kits would possibly be bought from the country.

The CTVs will be priced to cater to the mid to premium segment. and would be priced upward of Rs 5,500.

"Daewoo intends to manufacture CTVs ranging from 14 inches to 29 inches, both in the normal and flat screen segment to begin with," he added.

Daewoo has however also firmed up plans of washing machines, DVDs and Acs both window and split, pitching itself on competitive pricing and rebuilding the brand's image.

Daewoo has also put in place a brand rebuilding exercise which received a jolt following the failure of the vehicle manufacturing unit.