TCL to set up Rs 100cr unit in Vizag

First line of consumer electronics & white goods to be out before March 31, 2005

TCL India Holdings Private Limited, a wholly-owned subsidiary of the $4-billion TCL Corporation of China, along with its joint venture partner announced plans to set up a manufacturing unit for consumer electronics and white goods at Vizag with an investment of Rs 100 crore in two phases.

Addressing a media conference with the company representatives on this occasion, chief minister Y S Rajasekhara Reddy said that his government has decided to give sales tax holiday/ deferment besides providing 25 acres of land at government price, keeping in view the investment amount, the employment creation along with the potential scope for ancillary industries.

"TCL first approached us in September this year.Within no time they have firmed up their plans. This shows how fast the things in my government have been moving," the chief minister said.

TCL will hold 24 per cent equity while Sri Nahusha Electronics, its joint venture partner, will have 74 per cent in the Vizag unit. The first line of products will be manufactured in the new facility before March 31, 2005 under the first phase of the project, according to A Gopala Krishna, vice-president-sales and marketing of TCL India.

The unit is expected to employ 500 people along with an indirect employment potential of another 500 people.

Sri Nahusha Electronics, the main partner in the joint venture, is into assembly and maintenance of electronic goods and undertakes contract manufacturing. The goods manufactured in the Vizag unit will be sold under the TCL brand name. Replying to a question on the past activities of TCL in India, Gopala Krishna said that the company has re-entered the Indian market a couple of months ago after its earlier stint with the Indian marketing firm, Baron ended in the past.

Earlier, Rajasekhara Reddy said that some more Chinese companies are expected to set up their units in the state. He said that the government is thinking of extending similar tax incentives to other companies based on the volume of both investment and employment potential.

According to Botsa Satyanarayana, minister for major industries, the sales tax holiday for the TCL unit was fixed for a period of five years. "If the company opts for sales tax deferment, the said tax deferment will be valid for 10 years. It is up to them to choose either of the options," the minister said.

The joint venture facility will produce a range of electronic goods, including colour televisions, DVD players, home theatre equipment, home appliances, refrigerators, air conditioners, washing machines apart from desktop computers, laptops, digital cameras and mobile phones, according to Gopala Krishna. The spares for the products will be also be sourced from Indian manufacturers, besides importing the same from China.