Date:22/12/2007 URL: http://www.thehindubusinessline.com/2007/12/22/stories/2007122250020500.htm

Back LG Electronics increasing focus on premium products

Our Bureau

Bangalore, Dec. 21 LG Electronics India Ltd will be focusing on premium products such as GSM mobile handsets, flat display panels for television, and personal computers among other IT products, to double its sales turnover by 2010.

It would be investing Rs 1,000 crore in the next three years to consolidate its brand, with an increased focus on premium products. The company had invested Rs 320 crore in marketing during 2007.

LGEIL expects its sales in premium segment to grow to 30 per cent next year from 20 to 22 per cent now, Mr Amit Gupta, Head, Sales and Marketing ( Planning and Administration), said.

The company’s sales during the calendar year 2007 have been projected at Rs 9,500 crore, with more than 80 per cent coming from domestic sales.

Riding on the recent launch of LG Shine, a high-end mobile phone, LGEIL plans to unleash a few more upgraded versions of the same while toying with the idea of introducing operating system-based mobile phones to capture the IT savvy consumers’ interest in Internet surfing and for entertainment.

A late entrant in the GSM handset market, LG currently makes colour phones in the sub-Rs 14,000 price range. It plans to launch 32 new models next year.

Apart from the GSM and IT products, LGEIL also plans to strengthen its presence in the consumer durables segment with the launch of higher-end products.

The products will include front loading washing machines, refrigerators with latest technology and higher capacity range, split air-conditioners and plasma and LCD televisions. In refrigerator, the company has taken the lead in launching the 491-litre capacity model. It plans to increase the capacity from the current level of 2,000 to more than one lakh to serve both the international and domestic markets.

Briefing a group of visiting media persons at the Ranjangaon plant near Pune, Mr Govindaraj C.S., Factory Head, said the factory contributes to 20 per cent of LGEIL’s sales turnover. Contribution of GSM handsets to total turnover is expected to increase to 10 per cent next year from six per cent this year.