MUMBAI, Aug 6: Daewoo Anchor Electronics Ltd (DAEL) will launch its brand of washing machines and refrigerators in the lower-load niche in early 1998. This is part of the Korean consumer goods majors' strategy to expand its marketshare by taking on the might of Indian manufacturers' like Videocon and BPL in these segments.

DAEL's general manager (marketing & sales) Ashok Sharma, said: "At present, we are in the upper end both in the washing machine and refrigerators markets. Once our plant in Pune becomes operational, we will be active in the lower capacity segment for these products."

The washing machines will be two 5 kg models: twin tubs and fully automatic. While the 5 kg twin tub washing machines will be priced at around Rs 9,000, the 5 kg fully automatic machines will cost around Rs 16,000. DAEL currently has washing machines only in the 6 kg and above segments. The company's 6 kg washing machines cost Rs 27,000, the 7 kg machines cost Rs 34,000, the 9 kg machines cost Rs 41,000 while the 10 kg units are priced at Rs 68,000. In the above 5 kg segment, competitors include Electrolux, Voltas and Samsung.

The company has estimated the market for washing machines in the country to be 9 lakh units per annum. Out of this, semi-automatic machines will account for about 70 per cent with the balance being made up of fully automatic machines.

The company maintains that its range of washing machines is unique from others in the market. "Ours is the only one that can wash suits and silks. This is enabled through our unique air powered technology which releases air bubbles. This impacts on the clothes, and releases oxygen that enhances the solubility of the detergent, leading to a better wash," said Sharma.

On the refrigerators front, Daewoo Anchor claims that it has already cornered a 5 per cent market share in the country. With the launch of its 200-litre frost free fridges, the company will enter an altogether new segment which is so far the stronghold of domestic players.

The market for refrigerators is currently said to be in the vicinity of 2.5 million units per annum: 20 per cent for frost-free, and the rest for direct cool.

DAEL will launch two models of refrigerators early next year. This will include a 250-litre frost free model priced at around Rs 20,000 and a 350-litre one for Rs 23,000. The company says that its market share in Mumbai for refrigerators is currently 40 per cent, while in the West zone, the same is pegged at 33 per cent.

DAEL now has refrigerators in the 300 litre model (priced at Rs 34,000); 490 L (Rs 49,000); 580 L (Rs 65,000) and 661 L (Rs 75,000). Its competitors in this segment are Godrej-GE, LG and Samsung. Daewoo Anchor Electronics Ltd will pump in Rs 110-crore to set up a plant in Pune. The plant, slated to come up by early next year, will produce up to one lakh washing machines and refrigerators and 50,000 microwave ovens and vacuum cleaners. These capacities will most probably be doubled by the year 1999, says Sharma.For the year 1997-98, Daewoo Anchor expects a turnover of Rs 150 crore, which is expected to move up to Rs 1,000 crore by the year 2000.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.