Posco Daewoo's Grand Return to India: Focused on Sustainable Mobility and More

Posco Daewoo, a South Korean conglomerate renowned for its iconic Cielo sedan and Matiz hatchback in India, is making a triumphant comeback, this time with a strong emphasis on sustainable mobility. Y S Choi, the General Manager of Posco Daewoo South Korea, attributes this resurgence to India's thriving economy and surging consumer demand. The company's renewed strategy extends beyond electric two-wheelers, with plans to introduce power and energy products like solar and inverter batteries, along with a range of consumer electronics such as LED televisions, air purifiers, and refrigerators.

Daewoo's initial entry into the Indian market dates back to 1995 when it introduced the Cielo, followed by Nexia and Matiz. However, the company's assets were acquired by General Motors in 2001, leading to the closure of its India subsidiary in 2003-04. Now, with Daewoo under the wing of Posco, they are poised for a fresh start in India through a strategic partnership with Gurugram-based Kelwon Electronics and Appliances.

Choi highlights the substantial opportunities in India's energy and power market, estimated at over $100 billion, and the consumer electronics market, valued at more than $20 billion. Their primary focus is on India's rapidly expanding electric two-wheeler market, capitalizing on the Indian government's significant investments in these sectors and Daewoo's expertise as a manufacturer of batteries and consumer durables.

Choi underlines the remarkable transformation in India's economic landscape over the past two decades, emphasizing the imperative role of being part of India's growth story.

Daewoo's partner in India, Kelwon, initially aims to target the energy and power segment, offering automotive batteries for both two-wheelers and four-wheelers, solar batteries, inverter batteries, and lubricants. Once the business gains stability, they plan to diversify into other categories, including consumer electronics.

In the realm of home entertainment, Daewoo plans to introduce LED televisions and audio speakers. They also intend to offer air purifiers, coolers, fans, and kitchen appliances such as refrigerators, water purifiers, hobs, chimneys, and toasters.

Their distribution strategy includes both traditional offline channels and the rapidly growing online e-commerce sector, with plans to establish around 300 distributor points and collaborate with approximately 15,000 retailers, as outlined by HS Bhatia, Managing Director at Kelwon Electronics and Appliances. The grand return of Posco Daewoo to India promises to bring a fresh wave of innovation and sustainable solutions to the Indian market.