Speaking to reporters on Thursday Daewoo Electronics president and chief executive officer JB Chun said the company is committed to the domestic market and recognises the country's potential to be a major economic hub for the Asia-Pacific region.

Daewoo Anchor Electronics Ltd (DAEL), a joint venture between the South Korean major with 76 per cent stake and Anchor Electronics, will begin exporting products after sufficient localisation was achieved around 2000, he said.

Daewoo had earmarked an investment of Rs 356 crore in two phases, Rs 192 crore for completing the first phase of its manufacturing set-up in the country with the debt-equity project ratio of 1.90:1, he said.

A further investment of Rs 164 crore will be made for increasing the capacities of the plants near Pune and Delhi.

Daewoo Anchor's appliancesfactory at Ranjangaon in Pune will commence operation next month, rolling out its new line of 220- and 300-litre frost-free refrigerators, developed specially for the local market. The production of semi-auto washing machines from this factory will commence in December.

The capacity of washing machines and refrigerators which has 50 per cent indigenisation content at present is likely to go up to 80 per cent, he said, adding that research experts studied domestic conditions and useage patterns before designing the product. The factory will also produce microwave ovens, vacuum cleaners and air-conditioners.

Chun said the factory at greater Noida for electronics will begin production from the first quarter of 1999 with a capacity of two lakh colour TVs, which will have indigenisation content up to 45 per cent.

Daewoo Anchor managing director TH Shin said the company will not resort to a price cut of its products to achieve sales targets. Against a target of Rs 126 crore, the company achieved Rs 185crorein 1997-98. It expects to touch a sales target of Rs 400 crore this fiscal.