New Delhi, March 3
IN order to cash in on the cricket fever in the country, LG Electronics India Ltd (LGEIL) hopes to garner revenue of Rs 1,200 crore with its new promotional campaign for the Indo-Pak series.
The electronics major has roped in captains of the Indian and Pakistani cricket teams Sourav Ganguly and Inzamam-ul Haq for its new campaign, for which it has earmarked a budget of Rs 60 crore.
According to Mr Salil Kapoor, Marketing Head, LGEIL, the consumer offer called Khelega Kya would be on from March 8 to April 20.
Meanwhile, Mr Kapoor denied reports that the company was reconsidering local manufacture of handsets in Ranjangaon due to a 4 per cent special additional duty on components announced in the Budget. He added that the company was "concerned" over the lack of incentives given in the Budget for manufacturing of mobile phones. The company is learnt to have sent a representation to the Government in this regard.
To raise prices of ACs, refrigerators
Faced with the growing costs of key raw materials, LG Electronics is planning to raise prices by about four to six per cent on its range of air-conditioners and refrigerators. According to Mr Kapoor, the price hike would be announced this week.
Steel prices have skyrocketed in recent months, putting pressure on the margins of manufacturers. Further, measures announced in the Budget, which included a cut in excise duty on ACs by right per cent, offered little relief as most of the production for ACs already takes place in the excise free zones. Further, the abatement from retail price of excise duty was also reduced to 30 per cent in the Budget, putting further pressure on margins.