South Korean brand Daewoo has entered into fast-growing Indian consumer electronics and appliances market through its licensee partner Kelwon Electronics & Appliances, which has plans to invest around Rs 300 crore in the next three years. Kelwon, which sells products, including Lithium Hybrid Inverters and LED TVs, will introduce products in sectors such as energy and power, and consumer electronics, under brand Daewoo - now owned by South Korean conglomerate POSCO DAEWOO.
As per its marketing strategy, Kelwon would adopt a twin brand strategy, where it will place the products under Daewoo in the premium and mid-premium segment, while mass to mid-premium would be catered through its own brand, its Managing Director H S Bhatia said.
Kelwon will initially get the Daewoo products manufactured locally here through OEM (Original Equipment Manufacturer), under the R&D and technical support from the South Korean brand.
However, when the volume picks up substantially in the coming years, it may also consider investing to set up its own manufacturing, Bhatia said.
When asked about the investments, he said: "In the next three years, we are investing Rs 300 crore and this investment is reasonable considering that there is no manufacturing investment."
This would be spent mainly on marketing, R&D, product development, and creating sales and service infrastructure, Bhatia added.
Daewoo India Operations Director Chan Ryu said the rapid growth of the Indian market serves as the primary motivation for its decision to enter here through a 10-year brand licensing agreement with Kelwon Electronics & Appliances.
"In our initial stage, we are introducing a range of Power & Energy products, encompassing batteries for both four-wheelers and two-wheelers, as well as inverter and solar batteries. Additionally, we will offer a variety of HUPS inverters and UPS systems designed for both online and offline applications, featuring wall-mounted options with integrated lithium batteries," he said.
It is also set to launch high-capacity voltage stabilisers ranging from 0.5 KVA to 5 KVA to ensure optimal protection for electrical devices, Ryu added.
In the upcoming year, Daewoo will introduce products from its consumer durables portfolio here, which include air purifiers, LED televisions, audio speakers, water purifiers, smart fans, air coolers, home automation systems, and a comprehensive selection of small home and kitchen appliances.
Besides, it also has plans to unveil a captivating line of e-bikes and e-cycles in the Indian market.
"We Korean engineers and managers will work with this company (Kelwon Electronics). We are already providing the Korean technology to the company," he said, adding that to ensure the quality, it is monitoring factories.
Daewoo has a presence in international markets, including the US, Europe, China, the Middle East, and UAE.