LG Electronics India will invest $300 million over the next three years and foray into new product categories, as it plans to raise turnover from Indian operations to over $9 billion (Rs 45,000 crore) by 2015. The company will launch 250 products across categories in India by the end of the year.
LG Electronics India is planning to set up a chain of exclusive premium stores. It will launch 100 AC solution plazas and mobile galleries as well as 100 mobile stores this year. LG India is likely to close this year with a turnover of Rs 19,000 crore. LG India currently contributes around 6% to LG’s global business. It will increase to 12% by 2015.
?India is at the same position where China was a few years ago. The consumer durables industry will grow by 20% every year and we will grow more than the industry?, said Moon B Shin, MD, LG Electronics India.
The company has embarked on a new strategy towards growth. The proposed investment will be used for product development and assembly operations. It is also planning to set up a new plant in South India and the location will be finalised by the year-end. The company also plans to increase exports from India to 30% by 2015. By this year end, it expects to export goods worth $300 million.
The firm is bullish as it has achieved more than 30% growth in the first half of 2010. The commercial air conditioner business grew by 85% in value terms, mobile phones grew by 67% and a 76% growth was recorded in the LCD business. LG claims to have leadership in the air conditioner segment with a 29% market share. ?The result makes us confident of being able to build on the success and further augment our growth with more consumer-oriented and feature-rich products to achieve our target by this year-end,? said Moon B Shin.
The company will foray into new categories like water purifier, air purifier and built-in-system kitchen while aggressively pursuing the existing categories. Water purifier is one segment which has seen the entry of big companies like Tata.
