| Aiming high
Calcutta, Jan. 9: LG Electronics India Ltd is targeting a turnover of Rs 50,000 crore by 2010. To achieve this goal, the company would focus on the home segment for IT products like personal computers and laptops, GSM mobile phones and premium high-end products.
Salil Kapoor, marketing head at LG Electronics India, said, 'Our strategy of focusing on premium products has been working well. This segment accounted for 18'20 per cent of the Rs 6500-crore turnover in 2004 (fiscal January to December).'
LG expects to increase its turnover to Rs 9,000 crore during the current year.
The company plans to set up six exclusive stores across major locations in the country to showcase its entire range of premium products.
'The LG Lifestyle Shoppe will create a sophisticated brand experience for the consumer-durable buyer at the point of sale and showcase the entire range of our high-end products like plasma TV, DVD players, home-theatres, frost-free refrigerators, washing machines, designer ACs, microwave ovens, GSM mobile phones and MyPC desktops,' Kapoor said.
LG will also focus on increased penetration of PCs and laptops, especially in the home segment, to account for 15 per cent of the targeted turnover this year.
'We are finalising plans to introduce the LG HomeNet concept in the first quarter of this year. This concept will showcase networked appliances and will be sold through a separate retail channel,' he added.
'Though there will not be huge volumes in this segment, there is definitely an evolving market in India,' he said.
The company will also aggressively market its GSM mobile phones and plans to increase sales from 4 lakh units in 2004 to 18 lakh units this year. Kapoor, however, did not divulge any strategy for the CDMA retail segment.
'IT and mobile phones together will have a turnover of $5 billion by 2010,' Kapoor said.
LG is also expected to commence production of GSM mobile phones at its Pune facility this year. The unit will have the capacity to make 20 million phones, 50 per cent of which will be for the export market. The company is planning to invest up to $60 million by 2010.