Aiming to strengthen its position against Korean giants such as LG and Samsung, domestic consumer durables firm Videocon will invest over Rs 100 crore next year in research and development and in enhancing manufacturing capacities.
“Every year we invest Rs 50-60 crore in research and development. Next year,it will be 10 per cent more ... We are bringing up an entire new range on most products,” Videocon Industries Director, Mr Anirudh Dhoot, told PTI.
The company is lining up an entire new range in washing machines as well as in LED television segment. Besides, it plans to introduce more range in the Smart TV category.
“We are also enhancing our manufacturing units both in Uttarkhand and Maharashtra. We will make another Rs 50 crore investment for the new lines and on upgrading the technology,” Mr Dhoot said.
Videocon has seven plants in Gujarat, Uttarkhand, Maharashtra, Karnataka, Andhra Pradesh and West Bengal.
Besides, the company plans to increase local manufacturing in the country.
“We are going to focus more on domestic manufactring...India has a huge potential in the domestic manufacturing sectors. The Government should give more incentives and tax benefits...,” he said.
About 70 per cent of Videocon’s products are currently manufactured in India. The firm is in the process of setting up a new mobile manufacturing plant in the country and could entail an amount of up Rs 75 crore on it.
The company, which is looking to sell around 2.5 million mobile handsets next year, is currently scouting for locations for the new plant across the country, particularly in Kerala, Madhya Pradesh and Chhattisgarh.
Mr Dhoot said the overall consumer durables sector has had a tough year because of various factors like high interest rates, fluctuating foreign exchange rates and high commodity prices.
While the home appliances segment was not impacted much, sales of air conditioners were down mainly due to cool summer and early monsoon this year, he added.