Meanwhile, LG Electronics India Ltd (LGEIL) is setting its sights on capturing the IT and telecom space and has set aggressive growth targets.
The company is targeting 65% of its turnover in 2010 from mobile phones, Information Technology (IT) products and peripherals, KR Kim, president, South West Asia, LG Electronics and MD, LGEIL said. Currently, these contribute to 15% of LGs turnover in India, he said. LG is looking at a turnover of $10 billion from India in 2010. And most of these products will be manufactured at its Ranjangaon plant near Pune. In tune with this strategy, LG India has started indigenous manufacture of GSM mobile phone at the Ranjangaon plant and will soon start manufacturing CDMA handsets. It would also start the assembly line for the high-end third generation 3G mobile phone handsets at the plant by year-end if the government spectrum policy was favourable.
LG is looking at manufacturing 20 million mobile handsets units from this plant by 2010. With investments of $60 million till 2010, LG will be using the plant as a hub for exports to SAARC countries, Middle East and African markets.
LG has already set up a R&D team to customize the mobile phones.