Comments
Korean consumer durables manufacturer LG Electronics has said that it will invest Rs 1,500 crore in India this year to ramp up production and market the brand.
“We will invest Rs 800 crore to increase our manufacturing capacity this year and another Rs 700 crore on brand-building and marketing activities,” the LG Electronics India Pvt Ltd COO, Mr Y.V. Verma, told PTI.
The investment will be aimed at achieving the turnover target of Rs 20,000 crore set by the company for 2011.
“We did around Rs 16,000 crore last year and this year, we are targeting a 25 per cent increase in the total turnover at Rs 20,000 crore,” Mr Verma said.
He said the company would focus on product categories such as flat panel TVs, air-conditioners and mobile phones to drive growth in India.
Commenting on manufacturing capacity expansion, the COO said the company is setting up a new production line at its existing facility in Pune for refrigerators.
“We are also increasing the capacity for other products such as LCD TVs,” he added without giving details.
On the marketing front, LG Electronics has been investing funds to position the brand LG as a premium brand.
“The Rs 700-crore marketing budget would be focused on positioning the brand in the premium segment,” Mr Verma added.
With an intention to expand the reach of its products in rural markets, the company has identified 16 states in the country to conduct consumer research.
“We have identified 16 states, including Andhra Pradesh, UP and Punjab, to understand consumer demand in rural markets and enhance our distribution network,” he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.