Source: Economic Times
Daewoo India, a subsidiary of the South Korean conglomerate, has set an ambitious target to achieve ₹500 crore revenue by the financial year 2027 (FY27). The company plans to launch over 100 products across various categories, including consumer electronics, power, and home appliances, to achieve this goal.
Market Strategy and Expansion Plans
Daewoo India re-entered the Indian market in October 2023 and has been strategically positioning itself to capitalize on the country’s growing consumer durables market. The company is planning a comprehensive product rollout strategy, aiming to introduce two to three new products every quarter. To cater to evolving lifestyle needs, Daewoo’s product lineup will include essential appliances like air-conditioners, refrigerators, and washing machines, in addition to energy products such as batteries and solar panels.
Daewoo’s Managing Director, H.S. Bhatia, highlighted that the company is targeting the emerging market segments created by the rise of nuclear families and dual-income households. Currently, India’s penetration of consumer durables remains relatively low, with only 18% of households owning air-conditioners, 33% owning refrigerators, and 80% owning washing machines. This gap presents a significant opportunity for Daewoo to fill the demand for high-quality consumer appliances.
Brand Building and Retail Expansion
For the first two years, the company will focus on brand building and making its products relevant, especially for younger consumers. This phase will include a state-wise rollout prioritizing key regions in northern and southern India. Daewoo aims to establish a robust retail presence by opening 130 branded outlets across the country by 2025-2026. It is also in talks with major e-commerce platforms to expand its online sales channels and has plans to launch its own branded website.
Investment and Employment
To support its aggressive expansion strategy, Daewoo India has already invested ₹300 crore in infrastructure development and workforce expansion. The company has hired over 100 employees and plans to increase this number as it grows. While it currently does not plan to set up manufacturing facilities in India, the company is focusing on building its distribution network and enhancing its supply chain capabilities.
Future Revenue Goals and Growth Potential
Daewoo India is not just aiming for ₹500 crore by FY27; it has an even more ambitious goal of reaching ₹1,000 crore in revenue by FY29. The company’s strategy to leverage its Korean brand heritage and its “Beyond China” strategy will help it benefit from the reduced influence of Chinese manufacturers in India due to ongoing geopolitical issues.
Daewoo’s re-entry into the Indian market comes at a time when the country is witnessing robust economic growth and rising consumer demand, making it an ideal environment for the brand to establish itself as a key player in the consumer durables segment. With its focus on innovation, quality, and strategic growth, Daewoo India is poised to capture a significant share of the market in the coming years.
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