Daewoo India, which is gradually in the process of ramping up its electronics products business in India, aims to break even in FY26. “For the next one or two years, we have no plans to set up our manufacturing hub and we intend to continue to work with OEM partners (original equipment manufacturers). In this case, the manufacturing margin will be passed to OEMs, whereas the trading margin will remain with us,” H S Bhatia, MD, Daewoo India- the Indian entity of South Korean Conglomerate Posco Daewoo, told BrandWagon Online.
The South Korean conglomerate inked a strategic partnership with Kelwon Electronics and Appliances for an exclusive brand licensee for Daewoo in India. Last year, the company announced its investment of Rs 300 crore, for its plans to enter sectors such as the battery and inverter segment, consumer goods including home and kitchen appliances, and the EV sector. “We announced the entry last October and by February of this year, we have rolled out our power and energy products including batteries, inverters, and solar panels, among others. One of the reasons for such a fast rollout of these products is that compliance is easier when compared with electronics,” Bhatia added.
According to the company, these products are currently being sold across North India, partially Eastern, with the company’s plans to enter the Western belt including markets such as Maharashtra, and Gujarat, followed by South. “The plan is to reach all markets across the country by Diwali,” he said.
Meanwhile, as for the electronics business, the company claims to have launched its LED television set softly without much noise in North India in markets such as Rajasthan, Punjab, and Uttar Pradesh. These televisions are available between 24 inches to 105 inches and are priced between Rs 6,000 – Rs 2.70 lakh. Additionally, the company has rolled out an alkaline water purifier. These water purifiers available in four models are priced Rs 20,000 upwards. Moreover, the company claims to have entered the commercial arena as far as water purifiers are concerned and are priced at Rs 50,000 and upwards. “In addition to this, we are working on building a portfolio of home and kitchen appliances which includes mixer grinder, rice cookers, and air fryers among others. Our products will be different and we play on the proposition of value for money,” Bhatia explained.
The company claims that it will start marketing and promotion after its products are launched. This could be either this year between December and January or next year between April and May. It plans to tap into markets including Rajasthan, Uttar Pradesh, Tamil Nadu, and Telangana, among others, which have been high on the purchase of electronic items. “Besides this, we plan to enter the EV sector, a year from now. Right now gaining market share is not a concern but rather rebuilding the brand Daewoo,” Bhatia.
Moreover, to capture the attention of youth, the company claims to have entered other sectors such as wearables besides electric cycle. According to Bhatia, with Chinese brands under pressure in India, and Japanese brands being expensive, there is a plain field to build and create a strong portfolio of products.