LG’s India plans

Posted on | August 27, 2005 |

LG Electronics India is looking at a sales figure of around Rs 9,000 crore by 2010. It would use India as a production base for exporting to countries like Bangladesh, Nepal, Sri Lanka, Middle East and Africa; with exports contributing 50% of LG India’s revenue from GSM handset sales by then.

LG claims to be the first company to start manufacturing GSM handsets in India. It has invested $ 35 million, both in R&D and manufacturing. The first indigenous product will likely hit the Indian market by 2006.

LG’s revenue from GSM sales is Rs 400 crore and current market share in the mobile handset segment is at around 4 per cent. It plans to spend around Rs 30 crore for mobile sales promotion in FY 2005 and double the handset sales to 80 lakh from 40 lakh in 2004.

It sees good growth potential in the North-Eastern states. GSM penetration in eastern states is far below the national average of 24-25%.

“GSM penetration in Kolkata is 11 per cent whereas for other states in the east it is below 2 per cent, and therefore, the market potential is immense,” he noted.

Source: Business Standard

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