Daewoo To Pump In Rs 1,440 Crore In Ten Years

Daewoo Electronics Co, part of the $50-billion Daewoo group of South Korea, has decided to pump in $200 million (Rs 720 crore) in five years in its four manufacturing facilities and research & development centres in the country. It has lined up plans to bring in a total of $400 million (Rs 1,440 crore) in 10 years.

The multinational proposes to set up four manufacturing centres, one each in the western, northern, southern and eastern zones. While Ranjangaon and Greater Noida has been selected for the first two, the company is scouting for land near Chennai and Calcutta for the two other facilities.

 

While $50 million is being invested in the Ranjangaon and Greater Noida plants initially, another $50 million will be invested in the second phase of capacity expansion at these two centres.

A similar investment plan has been chalked out for the third and the fourth plants that Daewoo proposes to set up within the next three-four years.

Daewoo plans to set up an export base in the country for the Asia-Pacific and European markets once it sets up the facilities in south and east and achieves an indigenisation level of 80 per cent in its products manufactured in India.

As part of its global plan to invest $1 billion by year 2000 in overseas research and development facilities, Daewoo Electronics plans to set up R&D centres for c olour televisions and other appliances in the country which would be linked to its global R&D network. The company, which has formed a joint venture Daewoo Anchor Electronics, yesterday held the land-breaking ceremony of its first plant in the country located in a 40-acre site at Greater Noida near Delhi. The Indian partner has a minority stake of 24 per cent in this joint venture.

The plant, which will manufacture the Daewoo range of electronics like CTVs, audio and video products will have an initial installed capacity of 200,000 CTVs, to be expanded to 400,000 CTVs next year.

The plant is expected to go on stream in September this year.

Daewoo Anchors second plant on a 40-acre site at Ranjangaon near Pune will have its groundbreaking ceremony tomorrow. This plant will manufacture refrigerators, washing machines, air-conditioners, vacuum cleaners and microwave ovens, and is expected to begin commercial production early 1998.

Daewoo Anchor has pegged a debt equity ratio of 2:1 for its $100-million investment (Rs 360 crore) at these two plants and is now in the process of tying up the loans for the first phase. It has approached ICICI to syndicate to debt component both in terms of dollar as well as rupee loans.

Daewoo, which launched its products in the western markets, has targeted a sales revenue of Rs 150 crore in 1997-98 and expects to achieve a Rs 400-crore turnover the next year.

Daewoo Anchor yesterday launched 11 products in Delhi for the northern market. These include four models of refrigerators.