The Hindu Business Line : LG Electronics to raise plasma display panel production

AFTER establishing itself in the mass market, the Indian arm of the Korean consumer electronics and durables major LG Electronics, LG Electronics India Pvt Ltd (LGEIL) is now targeting the niche product market with its plasma display panels (PDP). LGEIL imports this high-end completely built unit (CBU).

On the PDP TV category, that doubled its sales year-on-year in the first four months of the year, Mr Prasanna Raghavan S, Product Group Head, New Display Products Biz Group Plasma Monitors, LCD TV, Projectors, said: "LG Electronics plans to gear up its production capacity to 1.7 million units per year. The digital TV production line would cover a wide range of models, including digital PDP TVs, digital projection devices and digital flat-screen TVs."

According to industry estimates, the high-end PDP-LCD (liquid crystal display) segment saw a sale of 3,500 units last year. This year the industry is expecting a sale of 7,500-8,000 units and by 2005, it expects to clock a sale of 16,000 units, a Consumer Electronics and TV Manufacturers Association (CETMA) official said.

In concurrence with the industry's view regarding growth in the category, Mr Raghavan said: "As per our estimates, the opportunity in the plasma category is around 7,000 units and in LCD another 2,000 to 3,000 units. LG sold 900 PDP TV units in 2003. Its 2004 target was 1,500 units, but the company is expecting to close the year with a sale of 2,000 units."

The PDP is available in sizes of 40, 42, 50 and 60-inch internationally. The company proposes to introduce the 76-inch PDP in the next quarter to the Indian market, he said. Sharing LG's plans for the category, Mr Raghavan said, "We are concentrating on industrial and institutional projects and retail."

The company has recently taken up projects including integrated solutions for Taj Hotel properties, Railways, airports and malls. For the retail segment, it has worked out a consumer finance scheme with zero per cent interest.

Regarding the pricing of these products where the entry level is largely below Rs 3 lakh, he said, "It is clear that there are two consumption patterns. Cheap products do not even sell at lower prices, but on the other hand, top quality products sell well at high prices. Plasma TVs will continue to co-exist in retail stores. However, consumers seem to want flat TVs at desirable price points. To address this need, the company is planning to offer LCDs in small screen and PDP in large screen sizes."

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