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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: ratan lal who wrote (3214)	11/17/1998 3:21:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 12475

LG Electronics $300 mil expansion plan- Well looks like somebody is bullish on India. LG Electronics India embarks on $300-million expansion plan; may double colour television and airconditioner capacity Suveen K Sinha in New Delhi LG Electronics India, a subsidiary of Korean giant LG Electronics, has embarked upon a massive expansion plan under which it is increasing its colour television manufacturing capacity from the current 400,000 a year to 800,000, the washing machine manufacturing capacity from 200,000 to 800,000 and airconditioner manufacturing capacity from 50,000 to 100,000. It is commencing manufacture of microwave ovens in January 1999 with an initial capacity of 50,000 units per annum at its Greater Noida manufacturing facility. The company is also gearing up to establish its own manufacturing facility for refrigerators after year 2000, when the capacity expansions in colour televisions, washing machines and airconditioners will be complete. We are also looking at setting up a manufacturing facility for vacuum cleaners, simultaneously with refrigerators, but a final decision in this respect has not been taken, LG Electronics vice-president (marketing) Rajeev Karwal told Business Standard. The capacity expansion and installation of fresh capacity will incur an increase in LG's investments in India to $300 million by 2005, making it the largest investor in India in the area of consumer electronics and white goods, says Karwal. Of this, LG will invest $20 million next year, $70 million in year 2000 and $150 million in the period 2001-05. It has already invested $60 million so far. According to Karwal, LG is targeting a turnover of Rs 1,200 crore (100 crore = 1 billion) in 2001 doubling to Rs 2,500 crore in 2005. business-standard.com