Companies

For LG, India will fetch more revenues than Korea in 3-4 years

Our Bureau New Delhi | Updated on March 12, 2018

Mr Soon Kwon, President of South West Asia Region & MD, LG India, and Mr Y.V. Verma, COO of LG Electronics India, at the launch of ‘Wonder Door Refrigerator’ and other products, in the Capital on Monday. — Kamal Narang   -  Business Line

When consumer appliances and durables firm LG Electronics India introduced its premium wonder door refrigerator and water purifier from its global portfolio, the audience gaped at the price tag — Rs 1.77 lakh and Rs 39,990 respectively.

But for LG, it is this premium range that will power its growth in the future.

Riding on such premium offerings, LG says it expects its Indian sales contribution to double by 2015.

The company says it will be pegging its growth on a diversified product range and increased distribution in both urban and rural areas.

“We expect Indian operations to increase its contribution from the current 6 per cent to 12 per cent by 2015. We are introducing new products in rapid succession and it will be a major revenue-earner,” says Mr Soon Kwon, President of South West Asia Region & MD, LG India.

Mr Kwon says LG has launched these premium products in India after they were first introduced in Korea last year.

“It is to reiterate that India is a key market for growth. We expect this (premium range) to grow significantly,” he said, adding LG's 35 per cent growth in the home appliance category in 2010 indicates opportunities for the company in the premium products space too.

Mr Kwon explains that LG will be increasing its penetration in rural areas as well.

“The Indian market is fast growing and in the next three to four years we expect that revenues from here will exceed LG's domestic sales in Korea.”

While the Indian operations currently has a turnover of about $3.5 billion (about Rs 15,500 crore), LG generates sales of up to $7 billion in Korea.

Also the company is ramping up its capacities to make India its global manufacturing hub.

“We want to go deeper into the Indian market and are also making investments in ramping up the production capacity,” he added.

This year LG Electronics India is targeting a revenue of Rs 20,000 crore.

Published on April 11, 2011

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