Post the investment, the plant will have a capacity of 1,000 panels per day.
Videocon Kitchen Appliances India Limited is also expecting 30 per cent sales growth on the back of higher consumer demand for flat panel LCD televisions and computers.
According to Goutam Sengupta, vice-president and COO of Videocon Kitchen Appliances India Limited, "We plan to sell the LCD panels for individual purchases for televisions and computers, to maximise sales."
The company is also bullish on the rural market for its products, in the face of competition from established consumer durables giants that have recently set up base in India.
"Videocon operates in the mid-market segment with its range of waching machines, televisions and microwaves. We expect around 75 per cent of our turnover to come from the rural West Bengal," Sengupta pointed out.
Videocon is also in advanced stage of negotiations with West Bengal Electronics Industry Development Corporation Limited (Webel) for manufacture of consumer electronics goods.
Videocon is aiming to forge a joint venture (JV) with Webel for manufacture of consumer electronics goods.
At present, Videocon has manufacturing facilities at Salt Lake and Taratolla in Kolkata and also in Siliguri.
According to a recent Ficci report, high-end flat panel TVs, including both plasma and LCD, are likely to witness 100 per cent growth.
The market for non-IT consumer durable goods is estimated at about Rs 35,000 crore.The rural consumer durables market is growing faster at around 25 per cent annually as against the urban market, which is growing at 7-10 per cent only.
The survey also emphasised that the urban market has now become a replacement and upgradation market.
Despite recent price hikes announced by companies to offset rising costs, consumer preference for high-end quality and high-value products has driven growth of the consumer durable industry across all segments and the trend will propel growth in the future, the survey added.
