The Hindu Business Line : LG India plans Rs 900-cr investment

LG Electronics India (P) Ltd (LGEIL), a wholly owned subsidiary of LG Electronics, plans to invest Rs 900 crore at its Ranjangaon (Pune) plant cumulatively by 2008.

The plant, which has been operational since October last year, will have the capacity to manufacture DVD writers and GSM mobile phones, apart from televisions, refrigerators and microwave ovens.

LG India plans to produce 33 million DVD writers by 2008 and 20 million mobile handsets by 2010 at the facility. It has clocked exports worth $100 million since January this year, and targets another $35 million by the end of the accounting year, which runs from January to December. LGEIL also has an export target of $240 million next year and $1 billion in 2010 with a compounded annual growth rate of 82 per cent. Announcing the exports figures at a conference on Wednesday, Mr K. R. Kim, Managing Director, LGEIL, said that the company would focus more on India to make it an export hub for markets in the Middle East, Africa, CIS and South Asia.

The company also plans to shift export production from its Greater Noida to the Ranjangoan facility to leverage on cost benefits. Explaining the shift, Mr Kim said, "We can source components from nearby places (of Ranjangaon facility), manufacture the products and export them from the port in Mumbai."

The company plans to launch 20-25 new models of its existing product range by the year-end. The Indian operations contribute 5 per cent to the turnover of the parent company. LGEIL recorded a turnover of Rs 6,500 crore last year.

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