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Our Bureau

MR WARREN WANG

Chennai April 20 Consumer electronics company TCL India Holdings Pvt Ltd is restructuring its multimedia and home appliances business divisions that include plasma TV, LCD TV, washing machines, air-conditioners and refrigerators.

According to Mr Warren Wang, Managing Director, TCL India, the company plans to introduce refrigerators in India this year. "We are currently inspecting Indian factories that can assemble our imported components (from China) into refrigerators," he said on the sidelines of a press conference after launching a new range of air-conditioners and colour TVs (CTV). The company is also planning to introduce more models of air-conditioners (mainly split type) and washing machines, including a `two-star' rated air conditioner before July.

To unveil new models

As part of the multimedia business division, the company is planning to withdraw its existing LCD TV models and introduce new ones. "The LCD TV market in India has not been good for us, mainly due to our pricing. We plan to knock off these models and introduce more reasonably priced models," said Mr Wang. The company sells over 100 LCD TV models in China and spends about two-thirds of its research and development budget (about $180 million) on LCD TV.

Introducing more models of plasma TV in India does not seem viable for the company. "We are giving up the production of plasma TV for the time being as standards for small and mid-size TV models are unclear," he said. Four TCL plasma TV models have been introduced in India. These products are manufactured in China and assembled at Indian original equipment manufacturer (OEM) units.

The restructuring process is expected to finish in a few months. "We plan to launch attractively priced products during Diwali," Mr Wang said. The company plans to spend about Rs 32 crore on marketing, branding and promoting them.

TCL India generated revenues of Rs 400 crore last fiscal, with sales of five lakh CTV units, 1 lakh DVD players and 50,000 ACs. These product portfolios are expected to grow by 20 per cent, 60 per cent and 25 per cent respectively this fiscal. The company is particularly bullish about colour TV growth in India and expects demand for about 1 crore units by 2009.

More Stories on : Restructuring | Home Appliances

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