The Hindu Business Line : LG bets big on IT division

New Delhi, July 18 LG Electronics India Pvt Ltd has said it is targeting to clock around Rs 1,200 crore this year from its IT division, on the back of several product launches.

“The IT division contributed 13 per cent to the Rs 8,250-crore revenue of LG India in 2006 and is a key focus area for the company this year,” said Mr R. Manikandan, IT Division, LG Electronics India.

Growth prospects

He said the company was expecting 20 per cent growth in its IT division with new products being introduced. The company today unveiled three new products: Z1 - an auxiliary display notebook for Rs 89,990; LG S900 - a desktop-notebook combo priced at Rs 69,990; and a 3D LCD monitor for Rs 6,49,000.

“We are aiming at 30 per cent growth in volume terms and 20 per cent in revenues by the end of this year,” he added.

Mr Manikandan said while overall, LG India was aiming for a growth of 15 per cent in the current fiscal, the IT division would focus on leveraging the growing demand for technology products such as laptops and notebooks.

Monitors

“The monitor market is experiencing a shift from desktop to laptops and notebooks and the future growth of the company would also be driven by the same,” he said.

The company sells personal computers, laptops, LCD monitors and optical devices in the IT devices category, of which notebooks account for 25-30 per cent.

The company said the country’s laptop market is expected to be around five million units in three years, up from the current 1.5 million units. LG is eyeing to sell around 10-15 per cent of these as the market grows.