Anchor shifts loyalties from Daewoo
Anchor Industries, promoter of the Anchor-Daewoo combine, has become an OE supplier to competitors like Haier Appliances, which may eventually acquire the manufacturing plant, it is learnt.
MUMBAI: Unable to cash in on the brand equity of Daewoo in the Indian consumer durables market. Anchor Industries, promoter of the Anchor-Daewoo combine, has become an OE supplier to competitors like Haier Appliances, which may eventually acquire the manufacturing plant, it is learnt.
An electric accessories manufacturer, Anchor failed to scale up the brand in a fiercely competitive market. Anchor was also forced to do a re-think on its strategy with Videocon, which is close to signing the deal to take over Daewoo globally, working on a long-term strategy to push the brand in India.
The company had earlier approached several players to buy the manufacturing facilities in India. Anchor Industries’ officials were unavailable for comment. Pranay Dhabhai, whole-time director and COO, Haier Appliances, confirmed that the brand is sourcing its suppliers from Anchor.
“We are currently sourcing our requirements from Anchor. However, the company is also free to be an OE supplier to other brands. To that extent, we provide our design and technology specifications,” he said. The Daewoo brand has almost disappeared from the Indian market and dealers say they do not stock the brand at any outlets.
“We sourced the brand when Daewoo was directly involved in India. Anchor has never been our supplier,” said a senior official from a Mumbai-based dealership, Vijay Sales.
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After setting up the sales distribution network, Haier Appliances , the arm of the $8.7bn Haier, is working on setting up a research and development centre. “Majority of the products marketed in India will be manufactured through strategic partners by leveraging Haier’s design and quality,” Mr Dhabhai said. The production facility in India will be used later as a sourcing base for Africa, South-Asia and Middle East, sources added. Haier’s portfolio of products for the Indian market include refrigerators, colour televisions, washing machines, air-conditioners, microwave ovens, dish-washers, mobile phones and DVD/VCDs.
The Anchor group, which had been a minor partner in the 87%:13% JV with Daewoo, had picked up a majority stake with close to 90% equity in ’03. It had also taken over a liability of Rs 70 crore as part of the deal, along with the brand rights for Daewoo.
The JV in which Anchor Group picked a majority stake with management control last year currently has two CTV and appliance manufacturing plants in Noida and Ranjangaon.
The group’s investment in its Ranjangaon plant is understood to be more in the direct cool refrigerators, although the real growth is now coming in from the frost-free segment. Anchor manufactured and marketed the Daewoo brand with technological support from the Korean company.
Anchor-Daewoo had targeted sales of Rs 60 crore, including 50,000 CTVs in ’04. It had proposed to focus on refrigerators and CTVs and get into other high-end products from next year.
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