British technology company that designs and manufactures vacuum cleaners, hand dryers, bladeless fans and heaters is planning a foray into the Indian markets targeting an investment of Rs 1,200 crore over a period of five years.
"The company has applied for a business licence in single-brand retail. We should hear from the Indian government by December. We will be importing products to our own retailers, setting up our own retail outlets with an investment of of Rs 1,200 crore by mid-2017 for next five years. This investment includes setting up our own retail stores, employment cost and taxes," James Dyson, founder and Chief Engineer of Dyson, told IANS.
"A lot will depend on the discussion with the government. If we do well, we can look at investing more," he said in an interview.
The company will be allowed to open single-brand retail outlets by the government only if its products qualify for cutting edge or state-of-the-art technology, else it will become mandatory for it fulfill the requirement of 30 per cent local sourcing.
Local sourcing norms were relaxed by the government for companies seeking single-brand retail only for products deemed as having 'state-of-the art' or 'cutting-edge' technology for a period of three years, which can be extended by another five years.
Dyson said he is hoping to enter the Indian market under single-brand retail without having to fulfill the 30 per cent local sourcing requirement.
"I hope we get into cutting edge technology criteria in single brand retail. However, it is too early to say if local sourcing will be possible or not," he told IANS.
The company which is confident of achieving 2 billion pounds (16,567 crore rupees) turnover in 2016 has been clocking 100 per cent growth for the last four years.
The company is also hoping the vast consumer market of India would give a substantial push to its revenues. Dyson, which has the US as its largest market followed by Japan and China, said it is looking at India soon becoming its second largest market.
"USA is the largest market followed by Japan and China. I would think India could be second or third largest market for us. India is a large consumer market. It could be hundreds of millions of pounds from India," Dyson said.
The company is targeting consumers "who can afford its products" which are priced at a high-end range of Rs 1-3 lakh globally. It does not intend to have a differential pricing for the Indian markets.
--IANS
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