Consumer electronics brand Sansui, which is making a re-entry into the Indian market in partnership with the Jaina group which is popular as the makers of Karbonn cellphones, is planning to make India one of its global production hub enthused by the recent cut in corporate tax.
Jaina Group, which has 24 years license for the Sansui brand for India, Bangladesh and Sri Lanka markets, is going to invest around Rs 500 crore for a plant near Gurugram to produce smart televisions and appliances like washing machine, refrigerator and air-conditioners. The plant, set up over 30 acres, will be operational by next July and create over 3,000 jobs.
"We will pitch for supplying of the products to other Sansui operations globally since we can now compete on pricing with other production hubs in China and Taiwan after the drop in taxation," said Pradeep Jain, managing director, Jaina Group.
Sansui's head (global licensing) Lim Jew Tim said the potential for global sourcing from India exists for Sansui's operations in the US, China, Japan, Thailand and South Africa. "At present, Sansui operation in these countries source products from China and Turkey. Once the India plant starts, we will make this a part of the global production network," he said.
The government last week dropped corporate tax rates from 30% to 22% and imposed just 15% taxation for new investment in manufacturing units expecting this will bring a flurry of investment, including foreign direct investment, in smartphones and consumer electronics manufacturing.PMC Bank: RBI increases withdrawal limit to Rs 10,000 from Rs 1,000