Thomson, TCL in co-branding move

Following the formation of the global joint venture between Thomson of France and TCL of China, top executives of the two companies are carrying out a due diligence of their Indian operations and are planning to go for a co-branding exercise once the JV takes full effect, said company sources.

"A formal announcement is expected in the first week of February," the sources said. However, the management team of Thomson is likely to remain unchanged.

"Multiple branding may not work since the consumer perception of TCL and Thomson is very different. One is considered a Chinese price-warrior, and the other a premium product," said an industry watcher.

With a total production of 18 million colour TVs last year, the combine is now the largest CTV seller in the world. But in India, the more established of the two "" Thomson "" remains a marginal player with sales of 250,000 CTVs last year in a total market of 8 million units.

But with their combined might, the industry expects the company to pose a stiffer challenge in the CTV and, CD and DVD player segment.

TCL's earlier JV with Baron International failed to take off and the two companies were involved in a legal fight when TCL decided to set up a 100 per cent subsidiary in India.

Last month, the Foreign Investment Promotion Board gave the Chinese player a go ahead to start its wholly owned Indian facility.