TCL bets big on India, to shift operations here

China-based TCL, the world's largest colour TV manufacturer, will shift its operations in France and Poland to India over the next few years. The company is in advanced negotiations with various state governments for excise duty exemption and other benefits. "We will announce details of investments and plant capacities next month," said TCL's vice-president, sales and marketing, CM Singh.

TCL, which is also the largest player in the Chinese CTV market, on Monday launched 50 CTV models in India - the largest range offered by any consumer durables player in the country.

TCL India Holding's managing director Richie Liu Hongqi said India's relations with European countries are key to the decision of shifting manufacturing bases from France and Poland. Singh told FE that the move was also necessitated by high cost of operation at TCL's European plants that are part of the company's 67:33 joint venture with Thomson. The CTV plants at France and Poland have a manufacturing capacity of more than a million TVs each. TCL sold over 22 million CTVs worldwide last year.

With over 2 million manufacturing capacity being shifted to India, TCL hopes to sell at least one million CTVs this year as compared to 6 lakh in 2005-06. If successful, that would help it garner a share of around 10% in the domestic CTV market. The company has also upped its advertising budget from Rs 15 crore in 2005-06 to Rs 40 crore in 2006-07 to support the projected growth. TCL currently has a 4% market share in the domestic market.

The company will also launch products in other categories like washing machines, ACs and microwaves. These products are currently being test-marketed in the country.

Source:financialexpress.com