The Hindu Business Line : LG targets $100-m exports this year

LG Electronics, the South Korean consumer electronics and durable major, is planning to more than double its exports from India to $100 million (around Rs 453 crore) in 2004, a top company official has said.

"Our exports in the last year was to the tune of $40 million (around Rs 181.3 crore). In this year, our target is to achieve $100 million in exports," said Mr Girish V. Rao, Head, Sales at LG Electronics India Pvt Ltd.

Speaking to Business Line here, Mr Rao said LG intends to make India a hub for catering to market markets in SAARC region and African countries. "Consumers in India and these regions have similar buying patterns and preferences," he pointed out.

Products such as colour televisions and washing machines for these markets would be exported from India. LG is currently setting up a new facility at Pune at an investment of Rs 150 crore to expand production capacity.

In 2003, LG's turnover in India grew y 36 per cent to Rs 4,500 crore and earned a net profit of Rs 205 crore. In 2004, the company is hopeful of achieving a sales of Rs 7,000 crore and profits of Rs 450 crore.

The company is increasing its retail presence by reaching out to more small towns and rural areas. "We have established a presence in 300 district headquarters across the country. Our target is to increase this number to 500 by end of this year," Mr Rao said.

During this year, about a dozen new television models will be launched as LG plans to boost sales to 2.5 million units in 2004 from 1.7 million in the previous year. Commercial air-conditioner is another area where LG will get into this year.

LG, which recently entered the GSM mobile handset market, wants to emerge as the number two player in India, wresting 20 per cent share by end of this year. It plans to leverage on the existing dealers to sell the phones.

"We want to get our existing 3,000 dealers to sell our GSM handsets. Currently our 500-odd dealer sell our GSM phones," Mr Rao said.

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