TCL India to focus on select products
21 Apr 2007
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.
