India’s manufacturing saga is donning new shades in the consumer electronics space. Global biggies like LG, Haier, Electrolux and Whirlpool are finalising plans to sell Made in India labels in mature markets like Europe and US. At present, sourcing from India is largely limited to Saarc, Middle East and African nations.
The MNCs have already done their groundwork to develop India as one their prime global production hub, either by expanding capacity or through third-party arrangements. The export product basket from India is also being expanded in segments which have a developed domestic vendor base.
Global firms doubtless wish take advantage of India’s low-cost production capabilities. “The firms are looking at India as an alternative global production hub to China due to similar economies of scale. Several mid-sized firms are exploring similar option. This will ultimately pay off for India’s economy,” felt Suresh Khanna, secretary of CETMA, the apex industry body.
LG already sources optical disc drives and refrigerators from India for Europe. The company intends to invest additional Rs 33 crore this year to develop its Pune facility as an export hub. LG India is eyeing an export growth of 19% in 2007, which will contribute some Rs 950 crore to its turnover.
LG Electronics India managing director Moon B Shin told ET that exports to Europe will be driven through high-end home appliances. “We want to make India a leading export centre and hence will look at regular investment in R&D, quality and manufacturing to ensure that we make truly world class products,” he said.
Korean major LG’s global rival, Samsung too is developing a new unit in Chennai which will export all categories of home appliances by 2009. “Samsung will invest $100-million in the Chennai facility between 2007-11 to develop it as an export hub. We are pushing up exports to Eastern Europe, Russia and SAARC,” said Ravinder Zutshi, deputy managing director, Samsung India.
On the other hand, Chinese major Haier wants to kick-off its India sourcing by December. While the company will initially source from a third-party production arrangement, it has plans to build a greenfield “export-oriented” facility in India. It is currently identifying the location for this unit.
The MNCs have already done their groundwork to develop India as one their prime global production hub, either by expanding capacity or through third-party arrangements. The export product basket from India is also being expanded in segments which have a developed domestic vendor base.
Global firms doubtless wish take advantage of India’s low-cost production capabilities. “The firms are looking at India as an alternative global production hub to China due to similar economies of scale. Several mid-sized firms are exploring similar option. This will ultimately pay off for India’s economy,” felt Suresh Khanna, secretary of CETMA, the apex industry body.
LG already sources optical disc drives and refrigerators from India for Europe. The company intends to invest additional Rs 33 crore this year to develop its Pune facility as an export hub. LG India is eyeing an export growth of 19% in 2007, which will contribute some Rs 950 crore to its turnover.
LG Electronics India managing director Moon B Shin told ET that exports to Europe will be driven through high-end home appliances. “We want to make India a leading export centre and hence will look at regular investment in R&D, quality and manufacturing to ensure that we make truly world class products,” he said.
Korean major LG’s global rival, Samsung too is developing a new unit in Chennai which will export all categories of home appliances by 2009. “Samsung will invest $100-million in the Chennai facility between 2007-11 to develop it as an export hub. We are pushing up exports to Eastern Europe, Russia and SAARC,” said Ravinder Zutshi, deputy managing director, Samsung India.
On the other hand, Chinese major Haier wants to kick-off its India sourcing by December. While the company will initially source from a third-party production arrangement, it has plans to build a greenfield “export-oriented” facility in India. It is currently identifying the location for this unit.