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LG India targets $3-b export turnover by 2010

Our Bureau

Mumbai , Oct. 6

LG Electronics India, slated to be the South Korean electronics major's export hub for West Asia and African markets, aims to touch an export turnover of $3 billion by 2010.

This will constitute 30 per cent of the Indian arm's then prevailing total turnover.

The income pie is projected to flow 65 per cent from cell-phones and IT, the balance 35 per cent being from consumer electronics and home appliances.

"India is an important market and LG India is on top priority for investments. There will be fresh infusion of funds over the next six years from 2005 to 2010, which will be close to $250 million," Mr Bon Moo Koo, Chairman & CEO, LG Corp, has said.

The company's targeted turnover for 2004 is Rs 7,000 crore. "We foresee the Indian subsidiary contributing 10 per cent of the company's total worldwide turnover by 2010," Mr S.S. Kim, CEO & Vice-Chairman, LG Electronics, said.

On Wednesday, the company announced operations at its Rs 150-crore Ranjangaon plant, near Pune, having an installed capacity for one million colour televisions, 1,00,000 air-conditioners, one million refrigerators, 2,00,000 washing machines, 50,000 microwave ovens and 1,00,000 colour monitors.

The plant is LG India's second in the country, the first being in Greater Noida.

The Ranjangaon plant will also have a cell-phone production line operational by 2005. Total investment for this facility is pegged at $60 million by 2010, half of its planned production of 20 million units slated for export. The plant will start by making GSM phones, but may look at CDMA sets also later.

Since its entry into India in 1997, LG has invested Rs 750 crore ($160 million). The total investment till 2010 is forecast at Rs 1,900 crore ($410 million).

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