LG Electronics to invest $245 million more by 2005
(Wednesday, September 8, 1999)
Our Corporate Bureau in New Delhi(bs)
LG Electronics India Pvt Ltd, the wholly owned subsidiary of the South Korean consumer durables conglomerate, plans to invest $300 million in India by 2005, up from the current $55 million.
The company's vice-president of marketing and sales, Rajeev Karwal, also said that the firm was considering setting up a refrigerator plant in 2001 in Greater Noida on the outskirts of New Delhi.
LG's India revenues are expected to touch Rs 2,500 crore (Rs 25 billion) by 2005, said Karwal.
India is among 3 developing countries that LG is focusing on, he said. The other 2 countries are Russia and China.
Karwal also said LG would offer 25 per cent of its equity in its Indian arm to domestic investors in two years time.
"We stick to our commitment to offer 25 per cent of the company's equity capital to the Indian public," Karwal said.
The South Korean company had given a commitment to the Indian government before entering the country in 1997 that it would offload part of its stake to public in five years.
Karwal claimed LG would become the number one electronic goods and home appliances company by 2005 overtaking the market leader BPL in sales turnover.
Currently, BPL, with over Rs 2,000 crore sales is the market leader in the segment followed by Videocon.
LG, which has crossed a turnover of Rs 680 crore in the eight months ended in August, is placed in the third place.
Karwal said the company has set a target of attaining Rs 900 crore turnover during this calendar and this included the revenue generated from the digital range launched on Monday.
The digital range launched here include interactive television sets, 100 hz Flatron television, digital projection televisions, liquid crystal digital focus refrigerators, inverter refrigerators, digital self-diagnostic washing machines, digital plasma air-conditioners.
The managing director of the company, K R Kim, said LG has adopted an ambitious strategy that aims at unique high tech goals in its core competencies. |
