TIRUPATI, India, Dec. 30, 2019 /PRNewswire/ -- TCL Group (000100. SZ) is accelerating the implementation of the group's global strategy, with the successful hosting by its subsidiary, China Star Optoelectronics Technology (TCL CSOT), of a roof-sealing ceremony for the Phase 1 of the main facility of its first overseas project, the India Module Project at the TCL Industry Park in Tirupati, Andhra Pradesh, India, on December 30, 2019.

APIIC MD Mr. Madi Reddy Pratap, TCL Group vice president and TCL CSOT senior vice president Zhao Jun, AP Government Investment Promotion & Infrastructure Development Special Representative Mr. Pratap Bhimireddy, MLA Mr. Madhu and China Construction Eighth Engineering Division’s overseas business general manager Wu Jianguo (from left to right) are pressing the button to start the roof-sealing ceremony

The ceremony not only marks TCL CSOT's embarking on the next critical stage of development in international markets but also represents the firm's moving a step closer towards its goal of achieving smart manufacturing and global distribution. In addition, with the completion of the main facility in India, TCL CSOT expects to enhance its capabilities in serving customers and partners worldwide and improve the supply chain system of the Indian panel sector.

TCL CSOT expands into India

The project has encountered a number of difficulties since the production facility started construction on September 26, 2019, including shortages of raw materials, workers and equipment. Thanks to the collaborative efforts of the project's team, China Construction Eighth Engineering Division Corp and local subcontractors, the completion of Phase 1 took place within three months, meeting all goals for this phase in terms of the physical build-out of the facility.

TCL Group VP and TCL CSOT SVP Zhao Jun is delivering a speech at the ceremony

At the roof-sealing ceremony, Zhao Jun, Senior Vice President of TCL CSOT, General Manager of Wuhan CSOT and General Manager of Large-size Panel Business Group called on the whole team to continue with the same level of effort to ensure the Indian facility's successful start of operations in March 2020 and upgrade to mass production just one month later, with the aim of having the project serve as the firm's first bridgehead outside of the home market.

The 280,000-square-meter facility will become the production centre for large-sized TV screens as well as small and medium-sized mobile device displays. The facility will be built in two phases. With a planned investment of 1.53 billion yuan (approx. US$219 million), Phase I will see the completion of 11 production lines, of which 5 will be allocated to TV panels and 6 to displays for mobile phones. The current roadmap calls for the production of 8 million 26" to 55" TV panels and 30 million 3.5" to 8" mobile phone panels annually, with built-in flexibility to adjust the mix based on the growth trends of the Indian market.

TCL CSOT chose India as the first overseas stop because of its great market potential. As India has become the world's third TV market and the second mobile phone market,Samsung, Xiaomi and other mobile phone and TV manufacturers, many of which are customers of TCL CSOT, all have factories in India. In order to respond to customer demand quickly, achieve the integrated production of whole TVs or phones, shorten the production cycle as well as the transport distance for the raw materials, improve the efficiency of the supply chain, and, generally speaking, enhance the industrial competitiveness of TCL Group, TCL CSOT launched the project in India.

Multiple measures undertaken to ensure a smooth and seamless workflow once the Indian facility is put into production

The aerial image of TCL CSOT’s module project in India

TCL CSOT put a substantial amount of effort into the planning for the organizational structure, factory resources and upstream suppliers.

• TCL CSOT is committed to establishing customer- and market-orientated flexible organizations with the goal of achieving unified management of customers, products and strategies in TCL CSOT India Module Project, Shenzhen CSOT and Wuhan CSOT.
• TCL CSOT is planning to bring the current mainstream production technologies and the most advanced production equipment into India by allocating its domestic resources.
• TCL CSOT is determined to invite its upstream supporting suppliers to invest in the local area in order to develop an overseas industrial cluster. Currently the India Module Project has attracted Chinese main material suppliers in the upstream supply chain to make investment locally.

Unlike previous investments, TCL CSOT is committed to outputting the supply chain capability from the panel to the complete machine by its India Project. It is the first time for TCL CSOT Module business to break into the international markets, which will pave the way for our panel business entering India.

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