LG in pact with Polygenta Tech for CTV production

Our Bureau

Pune, Dec 6: LG Electronics India Ltd (LGEIL) has tied up with Nashik-based Polygenta Technologies Limited for contract manufacturing of colour television sets to cater to the Maharashtra market, which has been identified as a priority market for LG.

Polygenta has a capacity to manufacture 1.5 lakh CTVs per annum of which LG would be utilizing around 30 per cent. Polygenta’s unit in Dundori, Nashik was set up in April 2001. Sub-contracting to Polygenta will help achieve substantial tax advantage for LG which could be to the extend of 15 per cent and this would ultimately be passed on to the consumers, Dr YV Verma, vice-president, HR and MS of LGEIL, said on Thursday in Pune. This tie-up will start manufacturing TV sets for LG from December 15 and help the company save Rs 1.92 crore in 2002.

Polygenta started contract manufacturing of consumer electronics in April 2001 and is at present manufacturing CTVs for BPL, AIWA, TCL and Salora. LG already has two contract manufacturing tie-ups in Mohali and Hyderabad. The plan is to have eight sub-contract manufacturing units across the country in Kolkata, Bhopal, Chennai and one more in Mohali to supplement the company’s manufacturing facility in Greater Noida. Identifying and tying up with more units will be completed in year 2002, Mr Verma said.

With these tie-ups the company is aiming a CTV sales of 2.8 lakh units. The regional partners are expected to contribute around 30 per
cent of the units being produced indegenously.

Meanwhile, the Korean chaebol has crossed a landmark of cumulative sales of Rs 5000 crore in India since it launched operations. To mark the occasion, the company organised a festival scheme with gifts for customers buying LG products and we were able to achieve a turnover of nearly Rs 300 crore between October 15, 2001 and November 15, 2001, Mr Verma said. LG’s CTV sales during this period was 1,15,300 units.