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China's Konka to launch wide range of electronic appliances in India

The $ 2 billion Konka group of China today unveiled a wide array of digital consumer electronics, home appliances, communication devices and office automation products for the Indian market.

''Our initial investment plans total Rs 5 billion and Konka Electronics India Limited will soon set up a state-of-the-art manufacturing base for exports to European and West Asian markets as well,'' said company's chief executive officer Rajeev Puri.

He said KEIL's introductory range for the Indian market will have 22 models of colour televisions, two models of digital video disk players and two models of video compact disk players.

The roll-out plan includes washing machines, refrigerators, airconditioners and microwave ovens in the home appliance segment besides corded and cordless telephone instruments, mobile phones, fax machines and colour computer monitors for the office automation segment. This is in addition to high-end audio systems.

Puri said Konka's Internet-ready and computer TVs are also ready for the global launch. He said KEIL's product range will span super-premium, premium, popular and economy segments.

''Initially, the products will be imported from China. Indigenisation will be done at a steady pace ensuring high product quality and global benchmark standards.''

KEIL is a joint venture with the Konka group of China holding 51 per cent stake, Hotline group of India holding 25 per cent stake and Wittis group of Hong Kong holding 24 per cent stake in the Rs 500 million equity.

The company is expecting sales of Rs 2.5 billion and plans to breakeven in first year of operations, Puri said. ''We plan to make available for Indian consumers state-of-the-art digital products at affordable prices and provide timely after-sales service.''

Konka group's vice general manager Huang Zhong Tian said the company's manufacturing facility will be operational by mid-2000. ''India is one of the largest markets in the world and we hope to capture 15 per cent of consumer electronics market share in the next five years.''

Tian said Konka will set up a modern research and development centre within six months to evolve India-specific models. The centre will be linked with its global R&D facilities.

In China, Konka sells 7 million CTVs annually and leads the market with 24 per cent share. The company's automated plants can assemble a CTV set in 13 seconds. Konka claims to be a market leader in Australia, New Zealand and Indonesia as well with a new model of CTV coming out every third day. It has manufacturing facilities in Australia, Indonesia, Mexico and the United States as well.

The total Indian market for CTVs is currently estimated at 3.5 million units per year which is likely to go upto 5 million units in the next two years.

The Konka group is one of 500 biggest industrial enterprises in China and has acquired international quality management system certificates of ISO 9000 and ISO 14,000 standards. It employs over 9,000 people and markets its products in 60 countries.

UNI

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