LG Electronics India Ltd, a fully owned subsidiary of Korean chaebol LG, will set up a $10-million compressor manufacturing plant in India.
"The facility will have a capacity to make 5,00,000 compressors per annum," said M B Shin, in-charge, overseas sales, LG.
The investment plan is part of the company's attempt to indigenise components used in LG's products manufactured in the country.
The compressor plant will cater to LG Electronics' requirement for its refrigerators as well as air-conditioners. The plant is expected to start production in three years time.
LG Electronics is also studying the possibility of setting up new production facilities elsewhere in the country. According to Shin, the company will set up one plant each in the eastern and western part of the country by 2003.
According to Shin, LG Electronics is targeting a turnover of Rs 6,000 crore by 2003. Almost 40 per cent of this will be accounted for by home appliances.
Meanwhile, LG Electronics is set to launch its vacuum cleaners under the 'Health Guard' brand by the end of this month. The company will come out with four vacuum cleaners in the price range of Rs 4,500-10,000. While two of this will be sold through the existing network of dealers, the other two will be sold through the direct marketing route.
According to company sources, LG Electronics is targetting a 20 per cent marketshare within one year of the product launch.
The company is also launching four refrigerators in the 200-300 litre range. It will invest $10 million to set up a production line for this. LG Electronics, which had committed to divest 25 per cent of its equity in favour of the Indian public, has begun an exercise to value its stock.
