Arjuun Bajaj, CEO & Founder of Daiwa
Tell us about Daiwa's overall manufacturing capabilities and capacities.
Currently, we have three manufacturing units in Greater Noida, Ludhiana and Himachal Pradesh. And as you know, our R&D centre and design house is in Shenzhen, China. We are further planning to invest more in factories.
Presently, we manufacture our motherboards in India and also have full backward integration setup for SMT, MI, FA, Clean Room and Moulding for our tv cabinets. We have a capacity to produce 2000 motherboards and 2000 TVs in a day. Also, we are known in the market for our Reverse Logistics - that takes effective steps for waste management; Green Marketing - for eco-design of its products and energy efficiency products; and lastly, for Green Manufacturing - to reduce environmental pollution.
You operate in a very competitive industry and also operate in a market where customers are both demanding as well as price sensitive. How are you managing costs at the shop floor level to ensure good quality at competitive prices?
Daiwa's main objective is to break the myth that the best products only come at a hefty price. The company prides itself on offering state-of-the-art technology at low price points. The reason Daiwa's TVs are top sellers could be that they are 50 percent cheaper than big brands and offer the same technology. The company is able to maintain low prices because its production facility is located in India. The R&D team sits in China, but all televisions are designed in India. The factory in Greater Noida has the capacity to manufacture 2,000 television sets in a day. The reason we are investing heavily in infrastructure is to take advantage of the economies of scale as domestic manufacturing reduces cost.
How many TVs are you currently manufacturing every month and how many are getting sold?
To be precise, Daiwa sold 10,000 LED TVs in the first year of operation; that one milestone has been significant yet unpredictable achievement for us. The LED TVs were sold through the online portals. Daiwa has progressed four times more in the second year if compared with the starting year of operation. An average sale of Daiwa is 3800 TVs a month this year, while manufacturing around 50,000 TVs as an OEM.
At present, what is your turnover and what kind of growth targets have you set for the next two years?
Our consistent efforts to escalate the brand to create a distinct name that stands out of the crowd are progressing. As far as our targets in terms of revenues are taken into account, the brand will be registering a turnover of more than Rs.45 crore this year. We expect the upcoming years to be more positive for the market. Moreover, with the amassing advancements, we envision the sector to be omnipresent at the global platform by 2020.
We are going to increase our sales base in different states since business today is all about a mix of technology, innovation, quality and cost. Also, with the aim and commitment to provide our customers with state-of-the-art products, we have envisioned being available across India within a span of few months.
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