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Neha Kaushik

Seeks local partner to manufacture consumer electronics goods

New Delhi , Oct 10

TCL, the $7.5-billion Chinese consumer electronics giant, is finalising plans to set up a manufacturing facility in India in partnership with a local company, making it the first Chinese company in this segment to venture into production here.

Mr Tomson D.S. Li, Chairman and CEO of TCL Corporation, told Business Line that the company is studying various options to start manufacturing in India. "The facility is likely to be set up in partnership with a local Indian partner. We are open to the possibility of the Indian partner having equity in TCL India. This is a practical way of doing business. A team from the company is currently doing research and studying potential sites for the facility and we will be taking a decision by the end of the year. In the long run, we see India becoming one of the most important manufacturing centres for TCL," Mr Li said. Currently, TCL India Holdings is a 100 per cent owned entity of TCL Corporation.

In fact, TCL is working on an aggressive India strategy to make the country one of its largest overseas markets in the coming years.

TCL's proposed India facility would manufacture colour televisions (both the conventional and flat panel TVs), air-conditioners and DVD players. The facility will have an initial capacity of 5 lakh TVs. According to Mr Li, the company may even get its component suppliers in China to make investments here once volumes grow. It also plans to scale up investments in its R&D centre in India to offer products customised for the domestic market.

"In the long run, India could even serve as an export hub. We may later on export to Europe, West Asia and other South Asian countries," Mr Li said. Apart from China, TCL currently has manufacturing units in Mexico, Poland, Vietnam and Thailand among other countries.

Korean competition

The company has been testing the Indian market for some time now, with its products currently being imported from China as well as being manufactured under contract by about 10 companies in the domestic market. "This is our second entry in the Indian market and this time we are doing more research about how the market is developing. We will be offering tough competition in the market with our products. Our products are priced between those offered by the Korean brand and the Indian brands, but the quality is the same as the Koreans. We will be investing more in marketing and expanding our distribution network in India," Mr Li said.

TCL India expects to close the current year with a turnover of Rs 550 crore, as compared to Rs 285 crore last year. Though India currently accounts for a minuscule percentage of TCL's sales, Mr Li said that he expected the Indian market to contribute about 25 per cent of TCL's total overseas sales in the next five years

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`India will become TCL's S. Asia hub'

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