A new company called Daewoo Anchor Electronics Ltd has already been formed and different products were launched in the western region on Saturday by the company.
The colour televisions, washing machines and refrigerators will initially be imported. Local production will start a year later when two plants, currently under construction in Noida, near Delhi and Pune in Maharashtra are completed. The products will be launched under the brand name Daewoo.
Daewoo Electronics will invest $360 million in India as a part of the Daewoo groups Rs 18,000 crore investment plan in a wide range of industries in the coming years.
Initially, the company will concentrate on the upper segment of the market. Colour televisions will be sold in the price range of Rs 45,000-60,000 refrigerators in four models of between Rs 34,000-75,000 and four models of washing machines between Rs 28,000-68,000.
The company subsequently plans to launch audios, VCRs, CD video, vacuum cleaners, air-conditioners and microwave oven.
T H Shin, managing director of Daewoo Anchor Electronics said the company will expand its product range next year. After local plants start production, products catering to the mass market at prices less than Rs 30,000 will also be launched. More plants are on the anvil in eastern and southern parts of the country.
Daewoo Anchor has set an ad budget of $5 million for the next 14 months. he added.
Once these factories are commissioned, the company will set up units in Bangalore for the South and in the East, he added.
Anchor Electronics, the 24 per cent joint venture partner, will help market the Daewoo products through its dealer network. However, Shin indicated that the JV will have 1600 dealers throughout the country to market its products.
Besides marketing, Anchor Electronics also plans to manufacture components for electronic and consumer appliances.
Daewoo Anchor Electronics also plans to set up R&D base and an industrial design centre in India. The R&D centre linked to the Korean companys research laboratory will help the local component manufacturers to standardise products.
