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May 15, 2001
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Money > Business Headlines > Report May 15, 2001 |
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TCL plans local manufacturingReeba Zachariah Consumer electronics maker TCL group, China's leading price warrior brand, is planning to make India a manufacturing hub, its first facility outside China. The group has already inked a joined venture with the Baron group, the leading domestic distribution company to market the TCL range of products. The alliance will now look at exporting the TCL range to the Middle East and even to Europe. Explaining the rationale behind the move, Li Dongsheng, chairman of the TCL group, said, "Not only is there a large domestic demand from India, there is also exciting exporting opportunities from Middle East and Europe." Dongsheng added that India was the preferred destination because labour cost was cheap like in China. As part of its expansion plans, TCL-Baron India, the joint venture, will be introducing a host of white goods including refrigerators, washing machines, air conditioners as well as IT-related products such as computers by July in the domestic market. TCL on Monday signed a fresh contract with Baron whereby the latter will place orders worth $14 million for white goods and IT products over the next 6 months. TCL-Baron India is a 51:49 joint venture between the $2.5-billion TCL Holdings company and the Mulchandanis-promoted Baron group. "The company does not have any plan to increase its stake in the venture," Dongsheng added. Relating to the pricing strategy of the new offerings, Shakun Mulchandani, chairperson of Baron group said, "We are working on the pricing strategy and it will be competitive compared with other brands." "The company is also planning reduce the prices of its colour televisions, digital video discs and visual compact discs by 7-10 per cent," Mulchandani added. A 14-inch CTV currently comes with a price tag of Rs 6,750, while a 21-inch CTV is priced around Rs 11,990. TCL Baron has targeted a turnover of Rs 4 billion in the first year of operations. The company has clocked a turnover of Rs 1.40 billion in the first six months beginning October 2000. TCL has a market share of around 5 per cent in the 5 million CTV market. Powered by YOU MAY ALSO WANT TO READ:
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