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Daewoo exports made-in-India cars to Egypt, eyes Rs 25 billion turnover in 2000-01

Daewoo Motors India Limited is seeking to get out of the red in the year 2000-01 and record a turnover of over Rs 25 billion, company managing director Shiv Gopal Awasthi said today in Surajpur, Uttar Pradesh.

Despite improved sales of its Matiz small car, the company expects to close the 1999-2000 fiscal with a net loss of Rs 300 million. Sales turnover during the year would be close to Rs 10 billion, Awasthi said at a function, marking the flagging off of its export consignment of 300 cars to Egypt.

The loss would be partly because of huge investments that the company has planned for this year. The company had recorded a net loss of Rs 160 million in 1998-99.

''However, we are moving towards a turnaround and expect to start recording profits soon,'' he added.

The company, he said, has also targetted to export around 5,000 cars from India by March 2000. For the following fiscal, the company has targetted to export around 1,000 units per month to Europe, East Asia, Central Asia and West Asia. ''In addition, we would export around 50,000 engines and transmissions every month which would later be hiked to 90,000 engines, 90,000 gearboxes and 1,000 completely built units per month in 2001-02,'' he added.

''The export of our cars to West Asia and Europe re-inforces the world class status and performance of our small car. We are confident that with its growing popularity, the Matiz will continue to register healthy growth figures in both the domestic as well as international markets. However, exports will not be carried out at the cost of domestic demand,'' Awasthi added.

This export of CBUs to Egypt comes close on the heels of the recent trial exports of three shipments of the Matiz from India to Sri Lanka.

''These underline the emergence of Daewoo Motors India as an export hub and a key growth point in Daewoo's global strategy. Since the start of operations, DMIL has exported components worth $ 79 million.''

Regarding the restructuring exercise in its parent South Korean company, Awasthi said, the exercise would only stimulate growth plans for the Indian market. ''In fact, the recent initiatives clearly indicate specialisation in the company's automobile business, which will further strengthen our presence in India."

Daewoo has also pledged to invest an additional $ 100 million to strengthen its Indian operations, which is in addition to Rs 40 billion already invested. The total equity base for Daewoo will thus go up to Rs 12 billion.

UNI

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