KOLKATA: Korean consumer electronic major LG India is planning to expand its manufacturing capacities and product exports from India for LG’s
global operations to save cost, amidst the slowdown. In sync, LG India now plans to export products to mature markets like Europe and grow its export contribution from 15% of turnover in 2008 to 30% by 2012.
LG India, which is the largest consumer electronic maker in India by revenues, achieved Rs 10,730 crore turnover in 2008 and plans to grow by 15% this year. “We are currently drawing up a plan to increase product sourcing from India. India is already a major export hub for the Middle-East, Nepal
and Bhutan, and we are further looking at Europe & Central Asia. The idea is to grow export revenues by 50% year-on-year,” LG Electronics India managing director Moon B Shin told ET.
LG India expects sourcing activities from India will rise substantially from July onwards when the global consumer demand is likely to revive. “The manufacturing quality in India is as good as in Korea and we maintain similar quality control norms. We have seen India origin products are accepted quite well globally,” said Mr Shin.
Mr Shin said LG India’s manufacturing is quite competitive in products like CRT TV and refrigerator. It had set up the Pune factory mainly for exports, as it is close to Mumbai port. The company already exports optical disk drive, GSM mobiles, AC, washing machine and PC monitor. “We also plan to export premium products from India, as and when we expand their manufacturing,” he said.
LG India plans to strengthen its sales force for growth engines like GSM phones and flat panel display products. “In fact, we recorded a 22% growth in sales in the January-March quarter, compared with last year. This is possible due to new product launches and strategic promotional campaign,” said Mr Shin.
“This year, we will focus largely on developing customised products for India and for this we are expanding our product customisation lab. The growth will be achieved with such products and through rural markets,” added Mr Shin.
