New Delhi, Dec. 10: Samsung India, the South Korean consumer goods major, will be investing Rs 125 crore in setting up a factory to manufacture refrigerators.
The company remains bullish on the Indian market and expects a rise in earnings growth, a senior company official said.
“The overall consumer goods market is growing by 7 per cent and we expect our sales volumes to double,” R. Zutshi, vice-president, sales, said here today. “While the population of China and India is almost the same, China’s market is almost double India’s at 15 million units.”
“We will introduce six models of refrigerators — four frost- free models where we see the maximum demand and two general refrigerator models,” Zutshi said. “The plant will commence production from August 2003 and will run full steam from 2004 onwards.”
Asked if these models will be the lower-end models and targeted at the rural markets, Zutshi said, “Due to local production, we will have price flexibility and will be able to price our products very competitively which we are unable to do right now.”
“However, we will still continue importing compressors as we won’t have a manufacturing base here,” he said.
Zutshi said demand for colour television is on the rise and we will soon introduce around four to five colour television models. “Our focus will be on television due to the World Cup cricket scheduled in March-April. The demand for washing machines is almost flat. So we will need to offset this with higher sales of air-conditioners and microwave-ovens.”