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Mr K.R. Kim, President, South West Asia, LG Electronics, & MD, LG Electronics India Pvt Ltd, at the refrigerator making facility at Ranjangaon near Pune. - Paul Noronha

Pune , March 22

THE country's first GSM plant for making mobile handsets from the house of LG Electronics started operations in Ranjangaon near Pune on Tuesday.

LG Electronics India Ltd (LGEIL), the Indian subsidiary, is set to hit the domestic market with 1.2 million mobile handsets, Mr K.R. Kim, President, South West Asia LG Electronics and Managing Director of LGEIL, said here.

LG Electronics has a target turnover of Rs 9,000 crore for the current calendar year and is estimating at least 10 per cent (Rs 900 crore) to come from the Indian operations.

Talking to presspersons, Mr Kim said the company is in the process of setting up another new facility, exclusive for producing GSM handsets and would be ready by August. He said it would hit the domestic market with CDMA mobile handsets by next year.

Mr Kim said LG Electronics was looking at production of two million CDMA handsets for the year 2006 and three million units by 2007. He said it was looking at SAARC, West Asia and the African countries for export of GSM handsets.

The company services Bangladesh, Nepal and Sri Lanka.

Mr Kim said the target was to export close to five lakh units for the current year and double it on a year-on-year basis. He said it would introduce all new technology in a phased manner.

Asked why the company was setting up a new facility for GSM handsets, Mr Kim said once the production line is ready, it is no longer necessary to go back to the Korean parent for any modification or requirement. He said it would be easier to produce handsets according to customer tastes and that the new facility would house 200 research personnel.

Currently, there are about 45 research personnel.

Mr Kim said the greenfield facility inaugurated in October 2004 has a capacity to manufacture colour televisions, air conditioners, refrigerators, washing machines, microwave ovens and colour monitors.

LGEIL has invested Rs 150 crore for the Ranjangaon facility, said Mr Kim. He said the company would begin commercial production of microwave here in a couple of days. Till now, the facility in England had catered to this.

The England facility was closed down due to high labour costs and since it was no longer a high value commodity unit in those markets. Mr Kim said the company was looking at a production of 1.2 lakh units for the current year and that the facility has a production capacity of three lakh units.

Mr Kim said LGEIL plans to bring in some of its production to the Ranjangaon facility from its Nodia plant. This facility will concentrate on export of IT products from the Ranjangaon facility. This will begin by the end of the current calendar year. He said exports are easier to handle from the Ranjangaon facility than from Noida.

He said the company expects a 15-per cent turnover for year 2005 from IT. This is expected to rise to 65 per cent by 2010.

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