The Hindu Business Line : LG identifies GSM, mobiles, plasma TV as growth engines

New Delhi, Aug. 21 Consumer durables maker LG Electronics India Pvt Ltd (LGEIL), which has been on a brand repositioning drive in recent months, has identified mobile phones, LCD and plasma televisions and personal computers as the products categories that will drive its growth in the coming years.

“They are growing faster than other products, and their low penetration makes the future potential very high,” Mr Moon B. Shin, Managing Director, LGEIL, told Business Line.

The company has already begun assembling LCD flat panel TVs at its Pune facility, and recently initiated import of 2,000-3,000 lap-tops per month as completely built units from Korea, for which it had received a very good response, he said.

Since LG manufactures both its LCD TVs and GSM phones at Ranjangaon near Pune, this facility will impel all future growth. “We cannot expand any further at Noida. At present, around 30 per cent of our revenue comes from the Pune plant, but I expect this to be 50 per cent in the next few years,” Mr Shin said, adding that the company would add new manufacturing lines, and invest $30-40 million every year for the next few years to increase capacity and add new products.

Share of market

As per current estimates, the market size for flat panel TV segment, which is growing at an annual rate of 50-70 per cent, is pegged at six lakh pieces. LG currently claims second spot and a market share of 21 per cent in the LCD segment and the top place and 30 per cent share in the plasma TV segment which is around 15 per cent of the total market.

“We will heavily promote plasma TV,” Mr Shin asserted, while Mr V. Ramachandran, Director of Sales and Marketing, explained that the company, which recently introduced a second, smaller plasma TV in the Indian marketplace, was working on “strategies to make plasma TV more affordable.”

Amongst the other products LGEIL will launch in the coming months is a new range of refrigerators, 225 to 300 litres in size, that have been designed and developed on the basis of an extensive consumer survey. There is also a plan to import large (300 litres and above) bottom-freezer refrigerators around April next year.

to renew ICC contract

LGEIL is set to renew its contract for sponsorship of cricket with the International Cricket Council (ICC) for a second term of eight years, and is currently working on fine-tuning the details of the deal. A formal announcement on this is expected by the middle of September.

Disclosing that the company had renewed the contract with the ICC, Mr Moon Shin said, “We have closed the deal for another eight years. We will use it as a platform to promote GSM, flat panel TVs and PCs — our future growth engines — and address the premium segment in all our promotions.”

LG’s previous 8-year contract with ICC came to an end after the World Cup earlier this year. The renewal was in keeping with the company’s bid to deploy a new identity as a premium and aspirational brand rather than a mass market player.

Mr Shin refused to put a figure to the sponsorship. He also said that LGEIL has plans to bring in a new brand ambassador next year, and hinted that a Bollywood star would be the likely choice.

More Stories on : Outlook | Consumer Electronics | Market Shares

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Zee forays into trade show biz, targets Rs 10 cr turnover

Karnataka Bank launches inward remittance facility

Delhi will get Suzuki’s brand display centre

It’s a wrestle for sports other than cricket

South African tourism meet

Finewinesnmore ties up with Chateau D’Ori for marketing

Nikon aims to capture more of compact, DSLR markets

Tata Indicom targets 10% share in Kerala

Superbrands felicitates 74 brands

LG identifies GSM, mobiles, plasma TV as growth engines