The Hindu Business Line : LG Electronics investing Rs 380 cr in India operations

Chennai, Feb. 20 South Korean consumer electronics major LG Electronics is planning to infuse another Rs 380 crore in its India operations during the current calendar year.

According to Mr Moon B. Shin, Managing Director of LG Electronics India Pvt Ltd, the funds will be utilised for creating some new production lines apart from meeting marketing and branding expenditure.

The brand, which currently enjoys 20 to 30 per cent market share across product categories, targets 40 per cent share of the premium-end market in the next three years.

As per LG’s definition, in the FPD (flat panel display products) category, ‘premium’ means 40” or above LCD or plasma TVs. While in the refrigerator sector it is 400 litres and above, it is ‘front-loading’ in the washing machine category, Mr Shin explained.

After sales service

The company is also working on expanding its after-sales-service network. “We have already put in necessary IT infrastructure to beef up our after-sales network in 22 cities, which will be expanded to another 18 cities before March end,” Mr Shin said. The company plans a new campaign highlighting its after sales service programme.

LG also plans to roll out various new products in the premium segment. “All the new products across categories are developed with consumer insights in mind. We have just completed a study on Indian lifestyle,” he pointed out. LG spends 4-5 per cent of its turnover on R&D globally.

For the year 2007, it posted a revenue of Rs 9,500 crore and it hopes to cross the Rs 10,000-crore mark during the current year. According to Mr Shin, India operations contribute roughly 4 to 5 per cent of its global turnover. “And, India is a major market and our key focus area in the Asia-Pacific region.”

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