The Hindu Business Line : LG India to invest Rs 100 cr for upgrade

Bangalore March 16 LG Electronics will invest about Rs 100 crore this year in upgrading its plants in India and has set a target of achieving sales of 10 million handsets by 2009.

The LG Electronics India Managing Director, Mr Moon B Shin, told Business Line that apart from flat panel displays, the company is betting big on its mobile business and wants to be among the top three players in the country. It will also launch its 3G phones later this year.

It will invest about Rs 67 crore in its Greater Noida plant and the rest in its Ranjangaon facility this year. Nearly 5 per cent of its Rs 8,250 crore turnover in 2006 came from mobile phone division.

Mr Moon said LG Electronics expects a 15 per cent increase in turnover from Rs 8,250 crore posted in 2006. Out of Rs 8,250 crore, 43 per cent came from home appliances, 39 per cent from consumer electronics, 13 per cent from IT products and 5 per cent from GSM. LG India has also forecast a 19-per cent growth in exports, which is expected to contribute Rs 950 crore to the total turnover in 2007.

Blue Ocean is critical

Mr Moon pointed out its Blue Ocean strategy across systems and products will be critical to the company's growth this year. Under the Blue Ocean strategy, the company has earmarked new segments and markets for launching its products. He said flat panel displays (FPDs) and GSM will be the main focus of the company.

"LG will aggressively strengthen its competitiveness in mobile communications and flat panel displays," he said.

He said the company had already rolled out products like Time Machine TVs and Chocolate mobile phones and will launch more technology driven and premium products across categories such as FPD and GSM.

Mr Moon, however, did not say whether there are any plans to shift production from its plants in other countries to India. "Any plans to add or shift production lines here would be based on market economics and demand," he said. LG has two plants in the country.

Its Greater Noida facility manufactures most of the electronics and consumer appliances products while the green-field facility in Ranjangaon in Pune is its largest optical disc drive manufacturing plant in Asia.

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