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China's TCL charts major re-entry strategy in India
Friday, 15 November 2002, 20:30 IST
NEW DELHI: Chinese electronics goods major TCL International Holdings is set to re-enter the Indian market with its consumer products after calling off a joint venture agreement with a domestic firm last year.
TCL has decided to embark on an extensive brand promotion campaign early next year. This will be followed by the launch of its range of colour televisions, air conditioners and digital video discs (DVD) players.
"We will start our business in India in January next year and this time we have decided to go on our own. We will not tie up with any company here," said Adhikarla Gopal Krishna, senior general manager of TCL Overseas Marketing Ltd.
"We are also conducting a survey in the Indian market to judge the demand for other hi-end products like high-definition television sets and sophisticated mobile handsets," Krishna told IANS here.
TCL Overseas is the parent group's arm to explore business opportunities in other countries.
TCL International is engaged in the design, manufacture and sale of a wide range of multimedia consumer electronics, IT and mobile equipments.
TCL's primary global products include colour television sets, home theatres, DVD players, personal computers and mobile handsets.
TCL International officials are currently visiting India as part of a high-level Chinese industry delegation representing 130 top companies. The delegation is in the Indian capital to take part in the country's biggest trade fair.
Mainly here to participate in the two-week India International Trade Fair (IITF) that opened Thursday, the delegates will also explore ways to promote bilateral trade and economic relations.
Chinese firms account for the largest number of overseas participants at the fair this year.
TCL International first entered the Indian market in 1999 after tying up with private electronics goods marketing firm Baron International to set up a firm called TCL Baron India Ltd.
The TCL brand managed to make a dent in the domestic market within a short period of time with low price tags and an aggressive marketing strategy.
The 50:50 joint venture to market TCL branded colour televisions and mobile phones, however, broke up last year after Baron got entangled in deep financial troubles.
But TCL has been looking to re-enter the booming consumer electronics market after walking out of the joint venture.
"We have earmarked an initial investment of 
1 billion for the brand promotion exercise and the launch of colour televisions, DVD players and air-conditioners in the first phase.
"We will also introduce other popular TCL branded products like refrigerators, washing machines and personal computers in a phased manner in the Indian market over the next one year," Krishna said.
TCL Overseas Marketing has decided to import all components from China and get it assembled through domestic manufacturers in India. The imported components would be in a mix of complete and semi-knocked down kits format.
"By the end of the first year of operation, we are planning to have a distribution and after-sales service network of around 1,700 dealers in different parts of the country," said the TCL official.
Six months from the product launch, the company will also explore the possibility of setting up its own manufacturing base in India, he said, adding the location and investment for the proposed facility had not been finalised.
The company has a state-of-the-art manufacturing base in Vietnam, besides China.
In recent years, Chinese companies have been flooding the Indian market with cheap television sets, toys and other products, putting pressure on domestic manufacturers.
Analysts say more and more Chinese companies are now setting their sights on overseas markets, particularly countries like India.
Source: IANS
1 billion for the brand promotion exercise and the launch of colour televisions, DVD players and air-conditioners in the first phase.
"We will also introduce other popular TCL branded products like refrigerators, washing machines and personal computers in a phased manner in the Indian market over the next one year," Krishna said.
TCL Overseas Marketing has decided to import all components from China and get it assembled through domestic manufacturers in India. The imported components would be in a mix of complete and semi-knocked down kits format.
"By the end of the first year of operation, we are planning to have a distribution and after-sales service network of around 1,700 dealers in different parts of the country," said the TCL official.
Six months from the product launch, the company will also explore the possibility of setting up its own manufacturing base in India, he said, adding the location and investment for the proposed facility had not been finalised.
The company has a state-of-the-art manufacturing base in Vietnam, besides China.
In recent years, Chinese companies have been flooding the Indian market with cheap television sets, toys and other products, putting pressure on domestic manufacturers.
Analysts say more and more Chinese companies are now setting their sights on overseas markets, particularly countries like India.
Source: IANS