LG strikes production deal with Webel

Announcing the deal, LG Electronics Pvt Ltd managing director, K R Kim said the company would produce 60,000 to one lakh units of CTV at the Webel unit. Kim was in the city to launch the 21 inches flat CTV. Christened Flatron, the new model came with 1200 watts, making it the most favoured in the urban and semi-urban markets.

Kim said, the company was in the process of setting up its second manufacturing unit in Pune for an investment of Rs 250 crore.The proposed unit was expected to be operational in August next year and would produce 12 lakh CTV and 2 lakh refrigerators, initially." The production capacity will be augmented subsequently," he added.

The company had invested Rs 500 crore in its first unit in Noida to produce its whole gamut of products namely CTV, washing machines, air-conditioners, microwave ovens, direct cool refrigerators and personal computers monitor.

He said, LG, claimed to be the fastest growing consumer electronics company, targeted a turnover of Rs 4,500 crore this calendar year. It has achieved a turnover of Rs 3,100 crore in the nine months of current year, a 53 per cent growth over the corresponding period of the last year.

In order to achieve the target, the company has been embarking on a strategy that pivots on rural marketing, expansion of sales network and post-sale service. Kim said LG was likely to end this calendar year with sale of 16 lakh CTVs. The number would go up to 20 lakh next year.

According to the latest survey on consumer electronics industry, LG had a 18.2 per cent share of the national market while it enjoyed a 20 per cent pie of the city market.

Kim said the company received an "overwhelming" response from the state and thus planned to achieve a Rs 297 crore sales this year, compared to last year's Rs 17.40 crore.

During the first nine months of the current year, the company's sale in West Bengal went up by 21 per cent to Rs 170 crore. The company had opened 108 billion posts this year vis-a-vis 68 billing points last year. LG had a network of 677 dealers and 11 distributors in the eastern region.

Vishaal Dutta, branch manager, Kolkata said the company has managed to grow over 40 per cent in the city since inception.