Posco Daewoo, the South Korean conglomerate renowned for its Cielo sedan and Matiz hatchback in India, is gearing up for a comeback in the country. The company's return is anchored in a strategic move to tap into the burgeoning market for electric bikes and e-cycles.

The decision to re-enter India is fuelled by the nation's robust economic growth and escalating consumer demand, positioning India as one of the most promising consumer markets globally, as stated by Y S Choi, the General Manager of Posco Daewoo South Korea. Apart from electric bikes and e-cycles, the company plans to introduce a range of power and energy products, including solar panels and inverter batteries, as well as consumer electronics such as LED televisions, air purifiers, and refrigerators.

To leverage the Indian market effectively, Posco Daewoo has partnered with Gurugram-based Kelwon Electronics and Appliances, a company with extensive experience in manufacturing, marketing, and selling Daewoo products in India. Choi emphasised the substantial opportunities present in India's energy and power market, valued at over $100 billion, and the consumer electronics market, exceeding $20 billion.

Posco Daewoo is banking on the rapid growth of the Indian electric 2-wheeler market, bolstered by substantial government investments in the sector. By entering India through these sectors, particularly as a leading manufacturer of batteries and consumer durables, the company aims to establish a strong foothold for long-term success in the Indian market, Choi added.

Kelwon Electronics plans to initially focus on the energy and power segment, offering automotive batteries for two-wheelers and four-wheelers, solar batteries, inverter batteries, and lubricants. Once this segment stabilises, the company intends to expand into other categories, including consumer electronics, in the following financial year.

In the realm of home entertainment, Kelwon plans to introduce LED televisions and audio speakers. The home environment category will feature offerings such as air purifiers, coolers, and fans, while the kitchen appliances segment will include refrigerators, water purifiers, hobs, chimneys, toasters, and more. The distribution strategy encompasses both offline and online channels, with plans to establish approximately 300 distributor points and collaborate with around 15,000 retailers, ensuring comprehensive coverage across the market, as stated by HS Bhatia, the Managing Director at Kelwon Electronics and Appliances.

Source: Business Standard