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India hub for Konka exports to SAARC nations

Indivjal Dhasmana in New Delhi

India would be the nerve-centre for exports of Konka products to SAARC countries. A beginning would be made with colour televisions from August 2000, says Rajeev Puri, CEO, Konka Electronics India Limited.

''The company has received tremendous enquiries from Pakistan, Bangladesh and other SAARC countries after the launch of a range of CTVs by Konka Electronics in India in August,'' says Puri.

The same response is expected from these countries once the company comes out with other products, including DVDs this month-end and telecom sets and washing machines around Diwali. As such, exports of CTVs would be followed by these products, besides other range the company is planning to introduce later on, he said.

According to the guidelines by the Foreign Investment Promotion Board, the company has an export obligation of Rs 803.2 million for its complete range of products in the block of seven years, Puri said and exuded confidence that the target would be easily met.

However, he refused to comment on expected exports on year-to-year basis.

The Rs 5 billion plant in NOIDA that will start functioning in August 2000 will import products from Konka in China or assemble by importing semi-knocked down kits in the initial phase. Subsequently, some of the products would be indigenised.

At present, Konka products are available in SAARC countries through pilferage and exports from India would replace that parallel market significantly.

Although SAARC would be the main centre of attention for Konka's exports from India, the company would also explore the possiblities of exporting its products to Europe and West Asia. Currently, the parent company Konka of China is exporting its products to Europe, including Turkey, Germany and Britain and West Asia, including Bahrain, Qatar, Kuwait, the UAE, Iran and Iraq and has a good network in these countries.

Puri said his claim that the company would easily meet the export obligation set by the FIPB is based on Konka's track-record. The nine-year-old Konka at present is the top-most electronic company of China.

In the United States, the company is two-year-old and is behind Phillips and Sony.

Puri said the cost of manufacturing in China is the lowest in the world because of a large-scale automation. Cost of producing electronic products in China is 80 per cent lower than South Korea, while in Japan and Europe, on an average, the cost is 200 and 300 per cent higher respectively than the Communist nation.

This is precisely the reason behind setting up of manufacturing units by transnational corporations like Sony, Panasonic, LG Electronics and Whirlpool Electronics.

UNI

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