Under the current arrangementbased on negotiations between December 2002 and May 2003Anchor has been given the brand franchisee for the Indian market.
In South Korea, post-restructuring the name of the parent company was changed from Daewoo Electronics Company Ltd to Daewoo Electronics Corporation (DEC) with a focus on products like digital TVs, VCRs, washers, refrigerators, vacuum cleaners and microwave ovens.
In India too, the legal nomenclature for the subsidiary changed from Daewoo Anchor Electronics Ltd to Anchor Daewoo Industries Ltd in September 2003.
In terms of distribution, Anchor has set a target to induct 400 dealers in November, up from the current 70. Anchors plan is to establish a network of over 2,500 dealers by 2004even then it will have a distribution base smaller than its formidable Korean siblings LG and Samsung.
Anchors managing director Hemang Shah is believed to be going to South Korea shortly for final negotiations with the management of Daewoo Electronics Corporation.
Though no exact information on the companys paid-up capital or whether the company was re-capitalised recently is available, Daweoo-Anchor is believed to have invested around Rs 220-250 crore during March 1997-2000. So bullish was Daewoo about Indian operations that it had enhanced its equity from 74 per cent to 87 per cent bringing Anchors equity down to 13 per cent from 26 per cent.
DEC, according to its Website, posted first quarterly sales of S Korean won480 billion and operational profits of W36 billion and has set a yearly target to post operational profit of W2.07 billion and ordinary profit of W100 billion ($85 million).
As per a new branding exercise, all Daewoo signage will be supported by a tagline of Brought to you by Anchor. Anchor is also contemplating having exclusive showrooms to showcase its products like frost-free refrigerators (220 litre to 650 litre), direct-cool refrigerators, microwave ovens (20 litre-29 litre), and colour televisions.
Anchor has signed ad agency Contract to position its refrigerators as anti-aging technology.