Daewoo is coming back with brand new range of products

May 4, 2024 6:35 pm

Daewoo partners with KELWON Electronics to re-enter the Indian market with immense potential. H. S. Bhatia implies that their focus is on renewable energy and home appliances. The intent is to also include solar panels, lithium batteries, and eco-friendly water purification solutions. Covering niche but vital segments, they aim to expand and seep into all the major industries. 

What is your re-entry strategy to the Indian market? 

The corporation has distinguished between three broad categories, including power and energy, comprising solar renewable energy, batteries, inverters, PCU-ups, lead acid, lithium, and two—and four-wheeler batteries. The entire range of power and energy, encompassing renewable and fossil fuel sources, is included. The organisation is building infrastructure such as warehouses, order placement, and product identification. The majority of the items will be made in India. Contract manufacturing will be employed to take advantage of reduced office manufacturing costs.

Before a product or brand launch, several things need to be taken into account. The first step is power energy. Three types of appliances are available: midsized appliances (such as air purifiers, water purifiers, coolers, fans, room heaters, and geezers) and small house and kitchen appliances (such as LED TVs, audio and video systems, and other large appliances). The entire electronic range includes big, small, and medium sizes. Electric vehicles (EVs) are also included in the given categories. 

What is the objective of the collaboration between Daewoo and Kelwon Electronics & Appliances?

Kelwon Electronics has been conducting business in India for the past few years, supplying the company with its current infrastructure. The partnership with Daewoo allows Kelwon to leverage its network, dealers, distributors, and forwarding agents. With our underlying experience with batteries, inverters, solar power, and LED TVs, we can go forward with products and launch. Through this strategic alliance, Kelwon can maintain its activities in India and is guaranteed support.

Why is the organisation considering reintroducing new products in India, particularly focusing on renewable energy and home appliances, after a 30-year absence?

We are witnessing the rapid expansion of the Indian market. We aim to provide customers with high-quality, historically significant products at reasonable costs.  India represents a sizable market for the corporation, and in the modern world, no multinational brand can thrive without being there. International businesses think there are several reasons to return to India, including robust growth, a fast-expanding market, and a high level of disposable income.

What is your plan for developing solar panels for the Indian market?

The Indian government has established a solar initiative for homeowners. They intend to cover one crore dwellings while providing generous subsidies. After installing a solar system, the users would use the energy produced and then feedback any extra energy to the grid. This will enable them to save money on electricity and make extra money. They will also receive a rebate for the capital costs of installing a solar system. Renewable energy is in high demand, and we are interested in it since it will grow rapidly shortly. We focus on households since the commercial range has huge companies like Tata, Adani, etc. 

Three parts will be required for installation: the solar panel, the battery, and the solar charge controller. The installation will be outsourced. This is a strong value proposition for the installer; he earns money. We are focusing from one kilowatt to 20 kilowatt. 

For the Indian market, we have tied up with the two after-sale service providers. They are equipped to handle the solar system installation and post-installation requirements. It is outsourced for our other products as well. The solar panels will be assembled in India. Few components will be imported, but most of them will be Indian.

How do companies navigate challenges in setting up diverse product manufacturing plants, ensuring sustainability amid volume requirements?

Setting up a manufacturing plant requires extensive research, including determining the right location, proximity to inputs, and available components. The maximum sale location considers any perks or subsidies that state governments may provide. After ordering the plant and machinery, the procedure takes an additional one to two years, which is two years of planning and implementation.

Launching a diverse range of products can be challenging due to the need for minimum volume when setting up the plant. For example, if an LED TV manufacturing venture struggles to gain traction, shifting towards producing automobile batteries might be more advantageous. This can be achieved by using existing expertise in automotive technology.

Engaging contract manufacturers like Dixon and PG for outsourcing can help determine the minimum number of products needed to sustain operations. It may take up to two years to ascertain which products have reached the necessary threshold for the plant’s viability. Analysis of market response over six months to a year can help identify which products are gaining the most momentum. The primary objective is to achieve the required minimum production volume.

Considering your product range, what kind of market potential exists for alkaline water in India?

The water solutions market in India is nearly $3 billion, with a hefty demand for domestic water purifiers. Reverse osmosis (RO) plants are prevalent in establishments like offices, factories, hospitals, and hotels, but they contribute to pollution and contamination in the water market. The need for clean and uncontaminated water, including pure air and groundwater, will rise by 2030. Tap water has also now become contaminated, necessitating the installation of large water purifiers for further filtration. Korea has already introduced pilot machines crafted for domestic and office use. These include five models for homes and kitchens, four for office and commercial settings, and one designed for tabletop use. This development has raised concerns over potential conflicts regarding access to clean water and food, as Korea appears to have a ready-made solution for these issues. 

Sustainability is a crucial aspect of business globally. Can you tell us about your commitment to sustainability?

Sustainability entails minimising e-waste and ensuring that manufactured products use sustainable energy or water sources. Our current products focus on renewable energy and pose minimal disposal challenges. We are also developing a lithium battery for India with fewer disposal issues. 

Our company provides water purification solutions in office spaces and factories by installing commercial water purifiers that dispense water into glass bottles, thereby reducing plastic consumption and cost. In five-star hotels, water purifier plants have been set up to refill glass bottles, eliminating plastic bottle usage in guest rooms. We operate under internal Korean processes that value compliance and sustainable energy practices.