DAEWOO India, a subsidiary of the South Korean conglomerate, has announced plans to increase local production to 70% in India, according to a report by The Hindu Business Line. Presently, 30-35% of its products are manufactured locally, according to Managing Director HS Bhatia.
Manufacturing Strategy and Investments
The company plans to invest ₹300 crore as capital expenditure (CAPEX) during its first three years of operations. It is considering potential manufacturing sites in Noida, Greater Noida, and Maharashtra, with plans to establish one production facility in northern India and another in the south.
By 2027, the company aims to achieve a turnover exceeding ₹500 crore and expects to break even. Beyond 2027, additional CAPEX of ₹200 crore to ₹500 crore is planned, depending on the scale and location of future operations. The company is targeting ₹1,000 crore in revenue by the fiscal year 2029.
Expansion Plans
DAEWOO India re-entered the Indian market in October 2023 and is focusing on the consumer electronics sector as part of its “Beyond China” regional expansion strategy. The company is exploring partnerships with major e-commerce platforms to expand its online sales, which currently account for 9-10% of the appliance market. Future plans also include launching an official website and considering exclusive brand outlets.
The company currently offers a range of products, including power electronics, kitchen appliances, and mid-sized home appliances, supported by a distribution network of over 2,000 dealers across 11 states.