Long before even India gained its Independence from the cruel British Rule, Indian business major Tata started to make its mark in the country. It ventured into numerous businesses and now has its roots deep into almost all forms of economic activity in the country. The business house of Tata has grown into one of the oldest and largest business conglomerates in India along with the likes of Reliance Industries and Aditya Birla Group.
They have their consumer electronic manufacturing arm by the name Voltas that manufactures air conditioners and had the largest market share with revenue of around INR 63,000 crore in 2017-18. This company is going to manufacture more products such as washing machines, refrigerators, microwave ovens and dishwashers to compete with the South Korean giants in the Indian market.
To take on the South Korean giants, the Tata group is joining hands with the Turkish conglomerate KOC group’s consumer technology arm Arcelik. Tata and Koc will hold 50% stake each in the venture and the products. The products will be branded as Voltas Beko. Beko is one of the brands of Arcelik and will be made in a plant that is coming up at Sanand in Gujarat. Until then, the products will be imported from China, Turkey and Thailand.
This will bring in funds from a foreign into the country in the domestic production of electronics. This will also benefit Tata in gaining some market share as it has been lagging behind the Reliance group for the last few years. Samsung and LG are the leaders of the Indian market. Hence, they will be keeping a close eye on the developments between the Tata and KOC as India is one of the largest markets in the world for them.
Chinese manufacturers have seeped in the country sensing opportunity to grow amidst the changing consumption patter of the Indian market. The e-commerce revenues have increased and this is the best time to enter the Indian market. The innovation level and manufacturing superiority of the Chinese brands such as TCL, Haier and Hisense are world class. Their USP is the affordability and Indian market is mostly a price sensitive one. Tata and most of the South Korean brands faces steep competition from these Chinese majors. Brand loyalty matters less for most consumers around the globe and so is the case in India too. The brand that offers good features along with sturdy build quality at affordable prices will be successful.
– Soumya De