South Korean consumer electronics major LG Electronics India is planning an Rs 2,000-crore expansion at its Ranjangaon facility near Pune.
The company has approached the Maharashtra Industrial Development Corporation (MIDC) for about 200 acres at Ranjangaon, a senior Maharashtra Government official said.
At the expanded facility the company will continue to produce its present line of products such as LCDs, TVs, air conditioners, refrigerators, washing machines and mobile phones, the official said.
“The MIDC has started a fresh process of land acquisition so that the company can set up the project soon. It is very keen to invest here,” the official added.
Other than LG, the Ranjangaon industrial area – managed by the MIDC – is also home to other electronics majors such as National Panasonic, washing machine maker Whirlpool, and Tata Steel Processing and Distribution Ltd. Spread over 925 hectares, the industrial area is sought after by industries because of its proximity to metros such as Pune, Mumbai and Aurangabad.
High Demand for Korean goods
South Korean companies like LG and Samsung are seeing a huge demand for their goods in India.
As their revenues from the South Korean market tend to plateau in time, emerging market like India will see steeper growth. Therefore they want to scale up as soon as possible, an industries source told Business Line .
The consumer spending demand for LCD and LED televisions is growing by over 100 per cent year on year. Consumers are also demanding smart, Internet-enabled and 3D enabled TVs – a good opportunity for LG that can fulfilled from local units, the source added.