The Hindu Business Line : TCL to unveil investment plans next week

Breaking new ground
TCL's proposed manufacturing plan may involve setting up two factories in India, one of which may be located in Uttaranchal.
This would also make TCL the first Chinese consumer electronics company to venture into manufacturing in India.

New Delhi , Nov. 18

The $7.5-billion Chinese consumer electronics giant TCL Corporation is likely to announce its investment plans for India next week, coinciding with the Chinese President, Mr Hu Jintao's visit.

A high-level delegation from TCL will be accompanying the Chinese President.

According to sources, TCL's proposed manufacturing plan may involve setting up two factories in India, one of which may be located in Uttaranchal. This would also make TCL the first Chinese consumer electronics company to venture into manufacturing in India.

While declining to share details of the proposed investment, Mr C.M. Singh, CEO, TCL India, confirmed that the announcement would be made next week by a high-level team from the company accompanying the Chinese President.

In his visit last month, Mr Tomson D.S. Li, Chairman and CEO of TCL Corporation, told Business Line that the company's proposed facility in India was likely to be set up in partnership with a local partner, adding that the Indian partner may even hold equity in TCL India.

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. Though initially the facility would cater only to the domestic market, the company may look to start exports as well at a later stage.

Apart from China, TCL currently has manufacturing units in Mexico, Poland, Vietnam and Thailand, among other countries.

Organisational revamp

Preparing to up the ante in the domestic consumer electronics segment, TCL India effected a major organisational restructuring earlier this month. Mr C.M. Singh, who was earlier vice-president (sales & marketing), has been appointed the president and CEO, while Mr Richie Liu has been made Chairman and Managing Director.

Though India currently accounts for a minuscule percentage of TCL's sales, Mr Li had said that he expected the Indian market to contribute about 25 per cent of TCL's total overseas sales in the next five years.

Apart from TCL, representatives from several Chinese companies, including China Gezhouba (Group) Co, China Minmetals Group, China Texmatech, China United Telecommunications Corporation, DongFeng Electric Corporation, Haier Electrical Appliances, and Huawei Technologies will be accompanying the Chinese President.

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