The group of Russian and Korean private persons established the Korean company Rolsen Electronics with its head office in 1995. It produces its own-brand domestic electric appliances and also produce-to-order for Korean company LG Electronics. The company owns factories in Korea, Moscow region (Fryazino city), Voronezh (south Russia) and Lithuania. Anam Electronics is founded in 1973 and makes part of Korean Anam Group corporation. It produces TV, DVD-players and domestic electric appliances for Anam brand. According to Hoovers figures Anam Electronics capacity in 2003 was $140 millions, clear profit – 48,4 millions.
Information about the bargain was confirmed to “Vedomosty” by Rolsen Digital Product Director, Jong Sik Yoon: “The amalgamation has been started about two month ago and all documents were signed in March 2005”. Paul Yoon, sells director of Anam Electronics, confirmed the fact of bargain, but refused of further commentary. However the parties verify that the sum of the deal is more then $15 millions.
According to market players Rolsen wants to diversify business with this bargain. “The main client of Rolsen for assemblage in Russia was LG Electronics company” – reminds ‘Sokol” company representative. Yet in April LG has announced a construction of four plants at a time in Moscow region with the building cost of $100 millions (two fridge and laundry washer producing plants and two Tele-Audio equipment producing plants). Putting manufacture into operation is planed for March 2006. In “Vedomosty” opponent’s opinion Rolsen could have problems with loading now. “They don’t want to loose the business capacity third and with LG quit the empty production lines could be filled with new brand”, - repeats Philips Consumer Electronics representative.
Rolsen not denies the possibility of launching of a new TV brand on Russian market. “We are not sure about it’s name yet. It will be either Anam, or something created specially for Russia, but it will take a position higher then Rolsen”, - tells Jong. Loading of free outputs will go step by step: first consignments of TV sets will arrive from Korea within the next month, then Rolsen company will examine the possibility of partial assemblage of few TV model in Russia. Production capacity is not divulged. “Firstly we should see how the models would be sold out” – says Jong.
By the end of the year Rolsen Electronics intend to take 18% of Russian CRT TV market. “From the beginning of the year we have spent $50 millions for engineering development of TV sets with shortened cathode-ray tube. DigiSlim technology will help to reduce the depth of TV for length ranged between 20% and 40% depending on diagonal size” – declares Jong.
According to Association of trading companies and manufacturers of consumer electronic and computer equipment (RATEK) the overall capacity of Russian market in 2004 was $8-9 billions. Rate of market growth – nearly 20-25% a year. According to evaluation of “Domestic electric appliances “Sokol” production and selling company TV market capacity is 7 millions items a year. The Rolsen share is about 7,1%. According to Rolsen’s personal numbers the company controls up to 12% of market.
“Goods maid in Korea are more in requisition then the same maid in Russia or in China” – Pavel Arseev, marketing manager of audio-video department of Samsung company, considers. In his words Rolsen has a good opportunity to “exploit the real Korean brand”. Experts founded difficulties in defining value of marketing and advertising campaign for a new brand promotion. “Not less then $1 million will be needed” – claims the representative of a large electronic producing company.