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LG eyes bigger market pie

Soon Kwon in Greater Noida on Monday. (PTI)

New Delhi, March 3: LG Electronics plans to invest Rs 800 crore this year on activities such as marketing and research, with an eye to lift its market share to 35 per cent by December.

The South Korean consumer durables giant, which is still to come out with its 2013 revenue numbers, is eyeing a turnover of Rs 22,000 crore in 2014.

“We plan to invest Rs 800 crore this year. While Rs 300 crore will go into research and development and production, Rs 500 crore will be invested in marketing and branding during 2014,” LG Electronics India managing director Soon Kwon said.

The company, which has a market share of 30 per cent in the consumer durables market, is looking at enhancing it by five per cent during the year, he said. “Our mobile and flat panel television business will lead the pack during the year,” Kwon said.

The consumer durables industry in India is pegged at around Rs 50,000 crore, according to LG estimates. “India features among our top five priority markets and LG India will continue to employ its technological and design expertise to bring impressive products to the market,” Kwon said.

The company today showcased over 230 products across various categories, including washing machines and refrigerators in the LG Tech Show 2014.

“Around 85 per cent of the products being showcased in this year’s tech show are new. Some have been developed keeping in mind the Indian market,” Kwon said.

The company had earlier said it was eyeing a 25 per cent growth in turnover to Rs 2,500 crore from air conditioners. LG is also looking for a 10 per cent growth in its industrial cooling segment with demand coming from pharmaceutical, manufacturing and retail sectors and big residential and commercial projects.

“We expect sales revenue of Rs 2,500 crore from the domestic air conditioning segment this year. It will be a 20-25 per cent increase,” LG India business head (air conditioners) Saurabh Baishakhia had said earlier.

 
 
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