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LG plans Rs 80 crore investment

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Pradipta Mukherjee Kolkata
Last Updated : Jan 20 2013 | 10:14 PM IST

LG Electronics India, the Rs 10,000 crore consumer electronics manufacturer, is investing close to Rs 80 crore on consumer insights, product development and marketing and promotional campaign.

The company is also organising 222 exhibitions pan-India showcasing its best products created for India.

To begin with, the company has introduced ‘Stars of India’ series of products specially designed for Indian consumption.

According to Ranjit Kumar, the Eastern regional head of LG, “We are investing nearly Rs 80 crore into marketing and promotions and product development. We are also hosting 222 exhibitions all over India to build awareness among consumers on the products we have tailor-made for Indian consumption. The exhibitions will continue till end of August.”

Highlighting India’s loyalty for cricket, every exhibition will have one ticket for South Africa Champions Trophy, which will be given away through a bumper draw. Continuing the lead XI trend, the exhibitions will also organise talent contests for kids.

Shortlisted winners here will get a chance to go to S outh Africa for Champions trophy along with one of the parent.

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While the government has lowered the basic customs duty on LCD panels used in manufacturing electronic goods to 5 per cent from 10 per cent, LG expects an increase in the cost of module by almost over 30 per cent beginning July till year end. Since module happens to be almost 70 per cent of the cost of an LCD TV, the company is left with no choice but to pass it on to the consumers.

LG said that the drop of 5 per cent on 70 per cent in reality means 3.5 per cent on the complete LCD TV. The module increase is stiffer than the relief. The company said that the customs duty drop will perhaps help it in absorbing some increase going forward.

LG currently enjoys a market of 30 per cent in LCD TVs, Frost Free Refrigerators, Top Loading Washing Machine, Split Air Conditioners and Convection Microwave Ovens. In GSM phones category, the brand is targeting 10 per cent market share.

“The idea is to leverage the Indian insight-based products to relate to the Indian consumer even better.

LG currently has manufacturing unit at Noida, while the second greenfield facility is located at Pune with capacity to manufacture GSM phones, colour televisions, air conditioners, LCD TVs, washing machine, refrigerators and optical disc drives.

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First Published: Jul 13 2009 | 12:45 AM IST

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