The Hindu Business Line : LG plans new plant for optical storage devices

CONSUMER electronics manufacturer LG Electronics India is gearing up for the next round of action at its Ranjangaon, Maharashtra, manufacturing facility — this time with plans to set up a new plant to manufacture optical storage devices (OSDs). Top company sources indicated the company was likely to launch the new plant, which will manufacture IT-related products such as CD and DVD writers, by early 2006. "These products are seeing unprecedented demand in the global market place and the plan is to tap the market when the plant goes into production,'' senior LG executives told Business Line.

LG India already sells over a lakh OSDs every month but the new plant will give it the quantum jump. "Work on the plant has already commenced but a formal announcement will be made only later after the finer details are worked out.'' Company sources also indicated that the company was considering using the new plant to venture into manufacturing LCD monitors for the European market, which is a huge consumer of this product. "If that happens, we are looking at manufacturing figures of one million units annually in the initial stages.''

LG Electronics India, meanwhile, seems to be gradually increasing its presence in the lucrative IT and related business and much of the action in this segment will be kicked off from the Ranjangaon plant, which is emerging a key hub for its export plans. "The plant currently contributes to over 50 per cent of our exports and this is expected to grow significantly in the next few years,'' Mr Girish Bapat, Vice-President, Marketing, said.

LGEIL's export figures touched the $100-million mark a few days ago and the company expects the figure to cross the $135-million mark by December.

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