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Mr V. Ramachandran

Bindu D Menon

Recently in Kuala Lumpur LG Electronic India Ltd (LGEIL) is poised for an image makeover – from a functional brand to an aspirational one. The company is repositioning itself by adding sheen to its designs, aesthetics and the product line to suit the new age consumers. The company also plans to enter newer categories such as air purifiers, wine cellars and built-in kitchens as a part of its expansion in India.

“We are conducting feasibility studies to diversify into newer categories such as air purifiers, built-in kitchen and wine cellars. We hope to launch the new range in 12-18 months,” Mr V. Ramachandran, Director, Sales and Marketing, LGEIL, told Business Line on the sidelines of the unveiling of its product range to Indian dealers, for which LG hosted a media team from India. The Korean durables major introduced its premium range plasma television ‘Scarlet’ and high-end washing machines Steam Tromm and Top Loader, and said it was making a conscious effort to woo new age consumers.

“Currently, our brand image is that of a functional brand. We are aggressively working towards lifestyle research and to make it aspirational. A lot of investment is being pumped into consumer understanding and lifestyle behaviour. This means that all our future product launches will stem from the backdrop of these researches,” he said. The company has earmarked Rs 380 crore for marketing and branding related exercises.

“This is 20 per cent higher as compared to the last fiscal,” Mr Ramachandran said adding, “our design centre in Noida will be scaled up. We are also working with colour specialists to create a broader palette for our products.” The company is targeting a turnover of Rs 18,000 crore by 2010 in India, accounting for about 10 per cent of the company’s global sales, besides developing the country as an export hub.

Currently, India contributes to about six per cent to the global turnover, which is likely to go up to 10 per cent by 2010. This year, LGEIL has posted a turnover of Rs 11,500 crore as against Rs 9,500 crore last year. The home appliances and GSM categories have also posted the highest turnover ever with Rs 700 crore and Rs 70 crore respectively.

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