Consumer goods maker LG Electronics today said it expects the Indian operations to overtake its domestic sales in Korea within the next three to four years on the back of rapid expansion and new product introductions.
The firm, which sees India to become one of the global manufacturing hubs for LG's worldwide operations, also said it will double the production capacity here within the next two years.
"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," LG Electronics President (South West Asia Region) and also the Managing Director of LG Electronics India Pvt Ltd, Soon Kwon told PTI.
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, he added.
"The Korean market is stagnating but in India there is a rapid growth in all segments," Kwon said.
This year LG Electronics India is targeting a revenue of Rs 20,000 crore.
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He said LG's mobile handsets business and television, which is fast moving from conventional cathode ray tube technology to LCD and flat screens, will be primary growth drivers in India, followed by home appliances.
With the Indian operations assuming more significance in LG global business, Kwon said: "We expect India to become another manufacturing hub, which are currently concentrated in Korea, China and Indonesia."
Subsequently, in order to meet both the domestic and export demand, LG Electronics India will be looking for fresh production capacity.
"Within the next two years, we should be doubling production capacity. However, we have not decided the final details. In all probability we may expand capacities at our existing plant in Greater Noida and Pune," he said.
The company's Greater Noida plant produces refrigerators, washing machines and televisions, while the Pune plant manufactures mobile handsets apart from its other products.
The two plants have a combined capacity of 30 million units per year across all the categories.
This year alone, the company is investing Rs 800 crore to expand production capacity, while another Rs 700 crore has been earmarked for marketing spends.
In order to drive faster growth in India, Kwon said the company will introduce more products which are suited for the market here.
"About 90% of the revenue here is from products we develop and manufacture here. In future more India specific products will be launched in new categories also," he said.
The company today announced its entry into the Indian water purifier market through the launch of a product priced at around Rs 40,000 targeting the premium segment.