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Electrolux India Shifting Some AC Production to China
Aug 23, 2004
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Appliance maker Electrolux India is shifting production of 1.5-ton split air-conditioners from its plant in Uttaranchal to China to take advantage of low raw material costs, according to Ashish Bhatnagar, product head, Air-conditioners, Electrolux India.

Addressing media representatives, Mr. Bhatnagar said, "We have decided to import the 1.5-ton split ACs from a Completely Built Unit (CBU) in China for Indian markets. We will stop the production of this range at our plant in Uttaranchal."

Mr. Bhatnagar said the newer version of the 1.5-ton ACs (imported from China) will be launched in India in another 2 months time. The company has already launched its 0.75-ton ACs. He said the AC market in India was witnessing a shift from "window" segment to "split" segment following the narrowing down of price difference between the two versions.

"Last year, the split ACs increased its share to 32 to 33 percent as the prices of split ACs came down," he said. "However, we will continue to manufacture other ranges, including 0.75-ton and 1-ton ACs from the Uttaranchal plant for the Indian market."

When asked about the price impact on products imported from China, Mr. Bhatnagar said, "Even after paying 20 percent customs duty and the countervailing duties, our ACs produced in China can match ACs made in India in terms of manufacturing costs."

As part of its special exchange offer -- especially for customers in Chennai and Hyderabad markets -- he said the company would offer its 0.75-ton split air-conditioners at a breakthrough price of Rs 12,990 (approx. U.S. $280). The company will also offer its 1-ton and 1.5-ton split air-conditioners at an attractive price of Rs 15,990 and Rs 21,990, respectively.

According to Mr. Bhatnagar, "Through the exchange offer we wish to provide increased value and excitement to our customers by making available state of art international range of air-conditioners that benefits their contemporary style."

The new range is equipped with the "oxigenerator" and "oxiguard," which are said to effectively remove odor, dust particles, smoke, and inhibits viral and bacterial growth. (News Today – India)

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