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LG plans to make India export hub

Press Trust of India  |  New Delhi 

South Korean consumer electronics giant is looking at making its export hub, on good ties between the two countries at a time when its overseas shipments from are declining.

According to Electronics Managing Director Ki Wan Kim, one of the main reasons for the company to look at making an export hub is due to tension prevailing between and

LG, which has two manufacturing units in India, to the Middle East and countries in the eastern coast of African continent.

Around 10 per cent of sales of the company's Indian arm -- Electronics (LGEI), are currently from Last year, LGEI had sales of Rs 22,000 crore.

"On the other hand ties between and have improved. All Korean (companies) have started to see as a strategically important manufacturing base not only for but for other areas," Wan told PTI.

When asked if is scouting for more for from India, he replied in the affirmative saying it is looking for countries where there is little or no manufacturing.

Earlier, used to serve such markets from but "it is declining gradually", Wan added.

"Already we are exporting from Noida and Pune to Middle East mainly in Saudi and Iran and African countries on (the eastern coast of the continent)," he said.

Another major factor for seeing as a major hub for is that the country is becoming more competitive economically and there will be secured and transparent taxation regime with the expected implementation of GST.

"is becoming more competitive economically. With GST coming up, its secured and transparent taxation regime along with a stable political system would help in project as a bigger manufacturing hub," Wan added.

can increase its manufacturing capacity whenever required, he said.

He said the company, which is celebrating its 20 years of operations in this year, has witnessed very high growth rate in the last couple of years.

is among the top five for in consumer durables category with the USA, Korea, Brazil and Russia.

Reflecting on the company's two decades of journey in India, Wan said: "It is an achievement in itself. We have seen many brands come and go in Not only have we sustained but we have become number one here."

On LG's success in India, he said: "We have been able to serve the needs of different consumers here. is not one country as far as consumer requirements are concerned."

The demand from consumers from South is different from those of the North or the East, he said, adding, "therefore we have a strong local R&D team, which helps in identifying the specific needs of consumers so that we can deliver it to them.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 18 2017. 14:48 IST