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Our Bureau

New Delhi , July 1

TO achieve a better share of the Indian air-conditioner market, Korean major LG Electronics said it would invest about $30 million (about Rs 130 crore) to strengthen operations in India.

"We are investing $30 million in India as we are looking at the business here to contribute about 8-10 per cent of the overall global AC sales," Mr Hwan-Yong Nho, President-Air Conditioning Division, LG Electronics, said.

India currently contributes about 4-5 per cent of the overall global sales. If the commercial AC business were to grow as expected in the Indian market, the Indian subsidiary could contribute 10 per cent, Mr Nho said.

According to he LG Electronics India Product Group Head, commercial AC Division, Mr Bijo K. George, of the proposed investments, about 70 per cent would be utilised for the commercial AC segment, while the balance would be on the high-end split room AC segment.

For the current year, the Indian subsidiary of the Korean company has set a sales target of about Rs 1,200 crore from the air-conditioning business. "We expect the CAC segment to contribute Rs 150 crore this year alone and Rs 250 crore by 2006," Mr George said.

The company today launched its multi power system commercial air-conditioner targeted at premium residential and mid-sized commercial establishments.

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LG eyes chunk of Indian AC market — To invest another $30 m in India

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