South Korean enterprise Daewoo, known for its earlier presence in India with cars like Cielo and Matiz, is embarking on a strategic return to the country. Their reentry plan includes a diverse lineup of products spanning electric cycle, alongside power and energy solutions like solar panels and inverter batteries Furthermore, Daewoo is set to introduce a range of consumer electronics, encompassing LED televisions, air purifiers, and refrigerators. This dynamic enterprise is certain to make a significant impact on India’s market with its innovative offerings.
The company has partnered with Gurugram-based Kelwon Electronics and Appliances, which has experience and capabilities in manufacturing, marketing, and selling Daewoo products in India.
Lets delve into the full story and see exactly what Posco Daewoo is planning for its entry into the Indian Market:
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WHY DOES DAEWOO WANTS TO COMEBACK IN INDIA?
Y S Choi, the General Manager of Posco Daewoo South Korea, attributes that the rise in consumer demand and India’s strong economic growth is the key intention behind Daewoo’s comeback plans in the Indian market. The company believes India is one of the most promising consumer markets globally because of these factors. In the report, Choi highlights the huge opportunities in India’s energy and power market, valued at over $100 billion, as well as the consumer electronics market, representing a $20 billion potential. Posco Daewoo is especially optimistic about the rapid growth of India’s electric two-wheeler market, thanks to substantial government investments in these sectors. The company pointed out the significant change in India’s economy over the last two decades, highlighting the importance of being part of India’s current growth journey.
WORDS BY YS CHOI:
“The Indian government is investing heavily in the development of Indian electric 2-wheeler market sectors, and we are the leading manufacturer of batteries and consumer durables products. Hence, by entering India through these sectors, we can position ourselves for long-term success in the Indian market,”
WHEN DID DAEWOO FIRST ENTER INDIA?
Daewoo made its debut in the Indian market in 1995 with the introduction of the Cielo, followed by the Nexia and Matiz models. However, in 2001, General Motors (GM) made the decision to acquire Daewoo’s global assets, excluding its India subsidiary, which eventually led to the closure of the Indian operations in 2003-04. Following these events, Posco acquired Daewoo.
So, what are Daewoo’s plans with Kelwon Electronics?
Daewoo’s partner in India, Kelwon, has initial plans to target the energy and power sector. Their product lineup will encompass automotive batteries for both two-wheelers and four-wheelers, along with solar batteries, inverter batteries, and lubricants. After establishing a foothold in this segment, their intention is to expand into other categories, including consumer electronics in the subsequent financial year.
For home entertainment, Daewoo intends to introduce LED televisions and audio speakers. In the household domain, they aspire to offer air purifiers, coolers, fans, as well as kitchen appliances like refrigerators, water purifiers, hobs, chimneys, toasters, and more.
HS Bhatia (managing director at Kelwon Electronics and Appliances):
|“We will be both in the offline distribution, which is the traditional distribution, as well as in the online ecommerce, and we will cover all aspects of distribution ourselves. We are planning to start with about 300 distributor points. And we’ll also have roughly about 15,000 retailers,”|
Daewoo comeback plans to India is a good sign for the country’s growing EV market, consumer electronics industry, and power and energy sector. This will offer Indian consumers more options and encourage innovation and competition in these areas. Daewoo success in the Indian market will depend upon the quality and pricing of its products. Achieving these goals will significantly enhance its prospects for success in the Indian market.