LG Electronics has identified India as one of the four big global production bases for colour televisions and components, apart from China, Indonesia and Brazil.
LG executives said the multinational has earmarked 15 per cent of its total global investments for operations in India. The group plans to invest about $300 million in its Indian business.
As part of its aggressive Global vision for 2005, the $11 billion Korean consumer electronics giant has targeted a share of 14 per cent (1.68 million pieces) of an estimated 12 million pieces CTVs market in India by 2005. For the year 2000, LG has targeted a nine per cent share (495,000 pieces) of an estimated 5.5 million pieces market in India.
LG has also decided to expand the capacity of its picture tubes unit near Gwalior in Madhya Pradesh from 750,000 at present to three million pieces over the next few years. The 50:50 venture with the Delhi-based Agarwals Hotline group is proposed to be used as LGs export base for the African, West Asian and select European markets.
The India plan is part of LGs new global strategy, which envisages production bases abroad accounting for up to 70 per cent of the companys total production, compared with only 17 per cent at present. The company is also targeting gross sales of $78 billion and a return on investment of 15 per cent. LG plans to launch a range of products in India by the middle of next month, including 14-20 inch CTV sets, washing machines with a capacity of more than 5 kg and refrigerators above 300 litres. The launch will begin from Delhi.
The multinational also plans to begin construction of a new plant at Noida in May. The plant is expected to be completed within 18 months.
The company will invest Rs 525 crore in India by the year 2001. The money will be used to set up manufacturing facilities, including a 800,000 pieces CTVs plant and 400,000 refrigerators unit.
