DAEWOO set to return to India with electric bikes and cycles
For the second time, the company reenters the market, driven by India's thriving economy and escalating consumer needs.
South Korean conglomerate Posco Daewoo is set to make a comeback in the Indian market, marking a return to a country where its vehicles, including the Cielo sedan and Matiz hatchback, were once cherished by Indian car owners. This return journey is not just about automobiles; it's a multi-faceted reentry strategy, with a primary focus on selling electric bikes and e-cycles.
India's Promise: A Catalyst for the Comeback
Posco Daewoo cites India's robust economic growth and the surge in consumer demand as the driving forces behind its comeback. Y S Choi, General Manager at Posco Daewoo South Korea, describes India as "one of the world's most promising consumer markets." The company aims to leverage this potential by offering an array of products, including power and energy solutions like solar and inverter batteries, and consumer electronics such as LED televisions, air purifiers, and refrigerators.
A Journey of Evolution
Daewoo initially entered the Indian market in 1995 with its Cielo sedan, followed by the Nexia and Matiz. However, in 2001, General Motors (GM) acquired the company's assets, except for its India subsidiary, ultimately leading to the closure of its operations in India in 2003-04.
Posco Daewoo eventually took ownership of the brand and now returns to India with fresh aspirations.
A Strategic Partnership
In its quest to capitalize on the Indian opportunity, Posco Daewoo has partnered with Gurugram-based Kelwon Electronics and Appliances. Kelwon's substantial experience and capabilities in the manufacturing, marketing, and sales of Daewoo products in India make them a strategic ally for this venture.
A Multifaceted Approach
Posco Daewoo is banking on the rapid growth of India's electric two-wheeler market. As Choi explains, "The Indian government is investing heavily in the development of these sectors, and we are the leading manufacturer of batteries and consumer durables products." By entering India through these sectors, Posco Daewoo positions itself for long-term success in the Indian market.
The Expansive Vision
Kelwon's initial focus is on the energy and power segment. They plan to sell automotive batteries for both two- and four-wheeler vehicles, solar batteries, inverter batteries, and lubricants. Once this business segment stabilizes, they will extend their reach to other categories. These categories include consumer electronics, where they plan to introduce LED televisions and audio speakers. In the home environment space, they aim to offer air purifiers, coolers, fans, and kitchen appliances such as refrigerators, water purifiers, hobs, chimneys, toasters, among other products.
A Comprehensive Distribution Strategy
Kelwon plans to have a widespread presence, encompassing both offline and online distribution channels. They intend to establish approximately 300 distributor points and collaborate with around 15,000 retailers. This comprehensive approach ensures that their products reach a wide and diverse consumer base.
India's Transformed Landscape
Choi emphasizes that the Indian economic landscape has seen significant changes over the last two decades, making it impossible for Posco Daewoo to ignore the country's growth potential. This comeback signifies their commitment to being part of India's remarkable growth story.