TCL Electronics Holdings Limited, a Chinese consumer electronics company, has recently revealed that it is planning to increase its stake in its Brazilian joint venture SEMP TCL by 80%, spending a maximum price of BRL 325 million through its affiliate TCL NL. According to reliable sources, the joint venture has managed to seize a solid foothold in the television segment as TCL branded TVs go on to gain substantial market share in Brazil.
Evidently, Brazil is the world’s fifth most densely populated country and offers remarkable market potential to the Chinese company. TCL’s decision to double its stake in SEMP TCL would pave a clear pathway for it to establish a deeper penetration in the sector. The move is also a crucial step in TCL’s globalization strategy.
After the completion of the deal, SEMP TCL would go on to become a subsidiary of TCL, with all its operating assets, liabilities, and results being consolidated under the Chinese firm's books. For the uninitiated, SEMP is one of Brazil’s biggest home appliance companies that sells and manufactures consumer electronics like small home appliances, TVs, and home theaters.
Along with its renowned brand value in the country, SEMP also offers solid capabilities of logistics, distribution, and manufacturing. Over the span of four years, SEMP TCL has managed to effectively penetrate the Brazilian market with its wide variety of products ranging from high to low ends.
It has managed to conquer a formidable position in the market despite the intense competition from international TV brands, which were successful to appeal to the masses.
Speaking on the development, Kevin Wang, CEO, TCL, said that even though COVID-19 has crumbled the global economy, it has not been able to undermine their company’s unparalleled faith in the globalization of its business. As of now, TCL Electronics is currently holding the second position in the global TV shipments sector.