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LG plans more built-in kitchen offerings

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BS Reporter Mumbai/ Ahmedabad
Last Updated : Jan 29 2013 | 12:47 AM IST

The company is evaluating entry into new segments such as built-in-kitchens, wine cellars and air purifiers. It is also determined to make India its export hub.

Talking about its foray into the new segments, V Ramachandran, director, sales and marketing, LG Electronics India, said the company was preparing a feasibility report on entering the specified markets.

"The plan is in the conceptualisation stage and we expect the feasibility report to be ready in the next three to four months. If found suitable, we might look at launching the segments in the next two years," said Ramachandran. The company will also invest about Rs 120 crore in its overall infrastructure facilities this year.

Through its two manufacturing units in Noida and Pune, the company is looking at a 25 per cent jump in exports from India by the end of this calendar year. In 2007, the company recorded about Rs 1000 crore from exports to countries in the Middle East, Africa and Europe.

On the back of growing demand for high-end consumer durables such as televisions, refrigerators, air conditioners and cellular phones, exports are expected to go up to Rs 1500 crore by the end of 2008. Other than few high-end products like phone handsets and high-end LCDs, the company has now started manufacturing most of its products in the country itself.

The company is expected to focus on Gujarat considering the market growth in the state is faster than the overall national growth. The growth across segments in Gujarat is 20 per cent, as against the national growth rate of 15 per cent, Ramachandran said. He also added that consumers in the state were interested in high-end product offerings.

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From the current market share of 8 per cent, LG India is looking to touch 10 per cent in the next two to three years.

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First Published: Apr 28 2008 | 12:00 AM IST

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