The company is entering the market with a range of TVs, refrigerators, air-conditioners and washing machines.
Hyundai Electronics, which has entered the consumer durables segment in the country, is looking to garner Rs 575 crore in revenue in FY20. The company is looking to offer a series of home appliances including smart LED televisions, air conditioners, washing machines and refrigerators.
In an interaction with Moneycontrol, Akshay Dhoot, CEO of Hyundai Electronics, said that their target segment will be middle income and high income customers. In Mumbai, the company will have presence through 250 retail outlets.
Hyundai Electronics is an extended arm of Hyundai Corporation, the South Korean multinational headquartered in Seoul. In India, it has a brand licensing agreement wherein Hyundai Corporation will be paid royalty. Dhoot did not disclose the exact royalty payable.
What will it sell?
Initially, Dhoot said, the focus will be on the television segment where TVs from 24 inches to 65 inches will be sold. He added that they will be cheaper than the traditional South Korean brands.
When it comes to washing machines, the company will sell both semi-automatic and fully automatic products.
"We will have partnership with specific firms for product manufacturing in India. Hyundai Electronics will not enter into the business of manufacturing these products," he said. So, for each product, there will a tie-up with an entity for production purposes.
At a later stage, Dhoot explained that they plan to enter into personal care (hair dryer, shavers etc) and kitchen appliances like wine chillers and juicers. He said the plan is to enter this space by the end of December 2019.
"We are testing several products at our R&D facilities. The idea is to be present across categories," he added.
How will they sell?
The company plans to have an offline presence so that customers get a 'touch and feel' of the product before buying it. Dhoot said that they will sell in stores across states like Maharashtra, Odisha and Madhya Pradesh.
He explained that they have a brand presence across the electronic retailers in India and added that they are not looking to set up standalone stores.
"The idea is to have a market share of 3 percent across every product category that we are present in," said Dhoot.Hyundai Electronics is looking to equip the products with technologies like artificial intelligence (AI) and machine learning features across segments. All their LED television will be AI-enabled, he added.