TCL ties up with DS Kulkarni
TCL to manufacture and market DS Kulkarni group's information technology and digital products in India.
By Rajesh Unnikrishnan & Ritwik Donde, TNN |
MUMBAI: TCL, China's third largest electronic manufacturer, has entered into a technical joint venture with Pune-based real estate and automobile firm DS Kulkarni group (DSK) to manufacture and market the former’s information technology and digital products in the Indian market. The DSK group has routed its information technology foray through its newly floated 100% subsidary, DSK Worldman Computers.
"The JV marks our foray into the IT and related business. We have made initial investments of Rs 25 crore for the necessary infrastructure, which includes setting up an assembly unit, establishing distribution and sales network across India and for procuring the required inventories. It may be the first time that a Chinese electronic goods maker has tied-up an Indian compnay to manufacture its products in India," DS Kulkarni, chairman and managing director, DSK group told ET.
According to TCL’s website, its PC business accounted for nearly 5% of the group’s total revenue in 2006. This business reported revenues of HK$1,568 million in 2006. Till 2006, TCL’s PC business was handled by TCL Multimedia Technologies. In 2006, the group company hived it off to TCL Group’s other listed entity - TCL Corporation.
Although the tie up is mainly a technical one, the revenues from the JV would eventually also accrue to TCL as the market presence spreads, said Milind Kshirsagar, executive director and CEO, DSK Worldman Computers Ltd. “Initially, TCL would be providing us with the technical knowledge and going ahead TCL would also earn a percentage out of the total turnover,” he added.
The company has already established its sales network by starting regional offices and appointing distributors in the cities like New Delhi, Kolkata, Mumbai, Ahmedabad, Nagpur, Aurangabad, Hyderabad, Bangalore and Chennai. The sales target set for the first year of operations is 40,000 units. The company says that it aims to be among the top four PC brands in India by the next year end.
Meanwhile, market watchers say that the market for electronic goods manufactring is all set to boom in India with more Chinese manufacturers coming to India. According to Gartner, the revenues from Indian electronics equipment production are expected grow at 15.7% CAGR to $28.7 billion by 2011, while India’s imports of electronic equipment were worth $15.3 billion in 2006.
The consumer electronics like TV and audio systems constituted 39% of the total production value in India, followed by communications electronics like cellphones at 38% and data processing electronics like PCs, laptops at 12%.
"The JV marks our foray into the IT and related business. We have made initial investments of Rs 25 crore for the necessary infrastructure, which includes setting up an assembly unit, establishing distribution and sales network across India and for procuring the required inventories. It may be the first time that a Chinese electronic goods maker has tied-up an Indian compnay to manufacture its products in India," DS Kulkarni, chairman and managing director, DSK group told ET.
According to TCL’s website, its PC business accounted for nearly 5% of the group’s total revenue in 2006. This business reported revenues of HK$1,568 million in 2006. Till 2006, TCL’s PC business was handled by TCL Multimedia Technologies. In 2006, the group company hived it off to TCL Group’s other listed entity - TCL Corporation.
Although the tie up is mainly a technical one, the revenues from the JV would eventually also accrue to TCL as the market presence spreads, said Milind Kshirsagar, executive director and CEO, DSK Worldman Computers Ltd. “Initially, TCL would be providing us with the technical knowledge and going ahead TCL would also earn a percentage out of the total turnover,” he added.
The company has already established its sales network by starting regional offices and appointing distributors in the cities like New Delhi, Kolkata, Mumbai, Ahmedabad, Nagpur, Aurangabad, Hyderabad, Bangalore and Chennai. The sales target set for the first year of operations is 40,000 units. The company says that it aims to be among the top four PC brands in India by the next year end.
Meanwhile, market watchers say that the market for electronic goods manufactring is all set to boom in India with more Chinese manufacturers coming to India. According to Gartner, the revenues from Indian electronics equipment production are expected grow at 15.7% CAGR to $28.7 billion by 2011, while India’s imports of electronic equipment were worth $15.3 billion in 2006.
ADVERTISEMENT
The consumer electronics like TV and audio systems constituted 39% of the total production value in India, followed by communications electronics like cellphones at 38% and data processing electronics like PCs, laptops at 12%.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
