TCL India to focus on select products

Chennai: TCL India Holdings Pvt Ltd, the Indian subsidiary of world''s largest television manufacturer $6.7-billion turnover TCL, China has decided to train its guns on select product lines like colour television, DVD, air conditioners and washing machines. The company plans to increase its dealer network and double its branch network by 2010.

According to Warren Wang, managing director, India will be the largest market for colour TVs by 2009 and we would like to take advantage of that. The Rs400-crore turnover company plans to do that by launching new models that addresses the gap that exists at the market place.

The company has colour televisions at various price points starting from Rs8,490. In the air conditioners segment the company mainly sells split models with the base model priced at Rs19,200. Wang does not agree that the company plays by its low pricing strategy. "At the market place there are brands at similar price points."

TCL India expects to grow the television volume by 15-20 per cent, DVD 25 per cent and the air conditioners by 60 per cent over its last year''s sales volume of five lakh units, one lakh units and 50,000 units respectively. "Our target turnover for the current year is Rs500 crore." The company is planning to spend around Rs40 crore on brand promotion.

On the company''s plans to set up its own Indian plant, Rajesh Rathi, general manager, said, "We looked at some places in Andhra Pradesh and also Noida. But they didn''t suit our needs." At the moment, TCL India gets its products made through six contract manufacturers, importing the components from China.

According to Rathi, the company is in the process of restructuring its small home product lines by pruning those items that does not bring in the expected margins.