To cater to the rising demand for its consumer products, South Korean conglomerate LG Electronics will invest Rs 350-400 crore in its Indian manufacturing plants this year.
Currently, LG Electronics has manufacturing plants in Pune and Noida.
"We will be investing Rs 350 to 400 crore in our manufacturing plants at Pune and Noida this year. The investment would help ramp up the infrastructure and capacity of the two units, which would help in meeting the rising demand," LG Electronics India's Business Head (Home Appliances) Rajeev Jain told reporters here.
The Pune plant manufactures refrigerators, colour televisions, air conditioners and mobile phones, while the Noida plant produces all these goods with the exception of mobile phones. Diversifying its product portfolio in the Indian market, LG is all set to launch a new refrigerator in India before the end of July. The eco-friendly model is expected to save as much as 18 per cent energy.
The refrigerator, which works on a linear compressor, promises to consume less energy and has a low-noise system. "We will be launching the refrigerator before the end of July. Buying this model would help consumers save energy. The price of this model will start at Rs 65,000 and can go up to Rs 1,65,000," Jain said.
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Moreover, the refrigerator, which is already available in other markets, will come with a 10-year warranty. According to LG officials here, the company has over 100 patents for its linear compressor technology.
Meanwhile, LG is aiming to increase its turnover in the Indian home appliances segment to more than Rs 5,000 crore this year. "We anticipate clocking an about 40 per cent rise in annual turnover this year. The increase would be mainly on account of higher penetration levels of our products," Jain noted.
LG's home appliance business includes refrigerators, washing machines and microwave ovens, among others. Meanwhile, officials with LG Electronics India said that they are expecting a turnover of Rs 19,000 crore this year, about 30 per cent higher from 2009.