The Hindu Business Line : No decision yet on Haier's production plans in India

"The economy of scale has to justify when the facility will be set up. But it is just a matter of time," said Mr T.K. Banerjee, President and CEO for India.

Bangalore , Dec. 10

CHINESE consumer electronics maker Haier Appliances has said that despite a tough year, it expects to reach its turnover target in India this year but is yet to take a decision on when it will set up its facility in the country.

Haier Appliances, which will be completing its first full year of operations by December-end, expects to meet its turnover target of around Rs 300 crore, the company's President and Chief Executive Officer for India, Mr T.K. Banerjee, told Business Line. He said no decision has been reached on when the manufacturing facility will be set up.

"The economy of scale has to justify when the facility will be set up. But it is just a matter of time," Mr Banerjee said. Last year, Haier announced that it plans to establish production facilities in India and use it as a sourcing base for exports to South and West Asia and Africa. It also plans to set up a research and development wing and a design centre in the country.

Difficult year: He said the current year has been extremely difficult for the white and brown goods manufacturers. "It is a matter of concern for us. Unusual conditions in India have hit the industry hard," Mr Banerjee said. Because of rains and floods in southern and western parts of the country during the year, the market has shown a downward trend. "We will, however, grow above the industry average next year but our base is small," he said.

Mr Banerjee said the Indian customers have moved away from buying low-end products to buying mid-range and high-end products. "While the volume comes from the low end, there has been a shift towards high-end and mid-range products," he said.

For example, frost-free refrigerators are selling more than other refrigerators while 29-inch flat colour television sets are selling more than the 21-inch flat CTVs, he pointed out. In India, Haier imports high-end products from its manufacturing facilities in China while others are sourced from strategic partners in India.