LG Electronics India Pvt Ltd (LGEIL) is all set to more than double its capacity to manufacture GSM phones at its Ranjangaon facility. The current capacity is at 4 million phones, which will be increased to 10 million a year, NK Song, director (manufacturing), LGEIL said.

The expansion will be both in quantity and in product range and there will be expansion in the number of lines in GSM handset manufacturing at Ranjangaon, Song said. GSM phones are also being exported to Southeast and West Asia. Currently, about 20% of the production is exported and plans are to take it to 40%, Song said on the sidelines of their CSR programme held on Friday at the University of Pune, along with Hanyang University of Korea, to launch a mobile science school for students of class seventh to ninth to promote their interest in basic science.

Apart from this, LG is also increasing capacity in commercial air conditioners above five tonnes and washing machines. ?Work has already started on the new building and it will be ready by the end of this year. This will take care of our needs for two years,? he said. Washing machines were being made at the Greater Noida manufacturing unit and will now also be made here.

LG will be investing Rs 200 crore for the expansion and another Rs 250 crore will be invested at the business partners? end. LG has most of its leading vendors within the 5-km radius around the Ranjangaon plant. Around 80% of the volumes come from these vendors who supply injected molded products and PCB assemblies among other things.

The plant near Pune manufactures seven products ? refrigerators, CRT TV, flat panel display, air-conditioners, LCD monitors, DVD writers and GSM phones. The DVD writers are made in the 100% EOU.

The company is confident of achieving a turnover of Rs 19,000 crore this year compared with Rs 13,000 crore it achieved in 2009. A lot of growth is being driven by LCD and mobile segments as well as the premium products in its portfolio.