While for
sometime now goods manufactured in India were meant
to cater to markets in SAARC, the Middle East and
Africa, more lately the “made in India “
tag is selling even in mature markets. Several Global
majors like LG, Haier, Electrolux and Whirlpool
are firming up plans to sell goods manufactured
in India in the US and Europe.
Global firms wishing to take advantage
of India’s low-cost production capabilities
are keen on making India their prime production
hub. To this end they have increased capacity or
entered into third-party arrangements.
Korean major LG intends to invest
Rs 33 crore to develop its Pune facility as an export
hub for optical disc drives and refrigerators. The
Company also plans regular investment in R&D,
quality and manufacturing to ensure quality products
from India. LG India expects an increase in export
of 19% in 2007, which will make for approx. Rs 950
crore addition to its turnover.
Another electronics giant Samsung,
is also nurturing a new unit in Chennai to export
all categories of home appliances by 2009. Samsung’s
investment kitty is close $100 mn and plans on exporting
to eastern Europe, Russia and SAARC.
Chinese Haier is also eager to
commence its India sourcing by the year-end through
a third-party production arrangement. It is however
in the process of identifying a location for a greenfield
“export-oriented” facility in India.
Haier plans to source only those products that have
an established domestic vendor base, to ensure minimal
import of components to provide the production cost
advantage in categories like frost-free refrigerators
and CTVs.
Videocon Group chairman Venugopal
Dhoot also revealed that Swedish major AB Electrolux
has plans to make India one of its prime production
hubs through an alliance with Videocon.
US-based Whirlpool Corporation
recently set up a global design and development
centre in Pondicherry for its small appliances brand,
Kitchenaid.
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