New Delhi, Jan. 24
LG Electronics is targeting a 300 per cent growth in its GSM mobile phone business this year at Rs 600 crore, with the launch of new models and an expansion of its distribution network being planned during the year.
"In 2005, we sold close to 4.5 lakh mobile phones and in 2006 our target is to sell 12 lakh," the LG Product Group Head (GSM), Mr H.S. Bhatia, said. The mobile handset business is expected to contribute around Rs 600 crore to the company's total revenues of Rs 9,000 crore, he said.
By pushing the GSM mobile phone sales, the company is targeting the number three slot in the market. At present, it is fifth largest mobile phone player in the GSM market.
"The GSM business is undoubtedly going to be the biggest growth driver in 2006. This year, we would clearly focus on providing a lot of value additions to upgrade existing basic and mid-end consumer," Mr Bhatia said at the launch of four new phones today, taking its range to 14 models. "We plan to launch 17 new models this year. If mobile phone service providers are allowed to provide 3G services, we will also launch 3G compatible handsets," he said. Of the four handsets launched today, three are in the high-end category while one is targeted at the mid-end segment.
LG is also planning to increase the number of its dealers to 20,000 in 2006, from around 11,000 in 2005, he said.