LG Electronics officials Hwang-Yong Nho (left) and Bijo George in New Delhi on Friday. (AFP)

New Delhi, July 1: LG Electronics India Limited plans to invest $30 million or around Rs 130 crore in its air-conditioning business.

Seventy per cent of the funds will go into developing commercial air-conditioners (ACs), while 30 per cent will be invested in the room category.

?Within the room AC category, most of the funds will go into manufacturing high-end split ACs. We are doing well in this segment and want to be the leaders in commercial ACs as well,? said Hwang-Yong Nho, president of the AC division and executive vice-president, LG Electronics.

Since inception, LG India has already invested close to $40 million in its AC business.

Nho said LG India's AC business will contribute 10 per cent of its total revenue by 2008. At present, it contributes approximately 4 per cent.

The Korean consumer electronics and home appliances major today introduced commercial ACs in capacities ranging from 5 to 12.5 tonnes.

LG, which has been selling commercial ACs in India since the last three years, has a market share of 20 per cent in this segment alone.

?With the launch of this range and a renewed focus on the commercial segment, we hope to increase our market share to 33 per cent. We are targeting business worth Rs 250 crore by 2006,? said Nho.

For the current year, the Indian subsidiary of the Korean company has set a target to sell ACs worth about Rs 1,200 crore. ?We expect the commercial AC segment to contribute Rs 150 crore this year alone,? said Bijo K. George, product group head, CAC division, LG Electronics India.

According to estimates, while the room air conditioner segment grew 28 per cent last year, LG India's AC division managed a compounded annual growth rate of 38 per cent.