Lg Electronics Sales Up 16% At Rs 2,216 Crore

LG Electronics India Ltd (LGEIL) has recorded a turnover growth of 16 per cent for 2001, ending the year with sales of Rs 2,216 crore.

Depressed market conditions, however, kept it way off its sales target of Rs 2,500 crore. But the company said it expected a revival of consumer sentiments in the coming months to help it achieve sales of Rs 2,700 crore during the calendar year.

LGEIL managing director K R Kim said: "We have been able to sustain growth during a year of slowdown in the consumer electronics and home appliances industry."

He added: "During the year, the growth record has led us to expand our manufacturing presence in India. We have reinforced our sales and distribution network through the concept of area offices to reach out more consumers in semi urban and rural India."

Company executives said, after having achieved volume sales of 6.5 lakh CTV units in 2001, the company aims to sell 8.5 lakh CTV units in 2002 -- increasing its market share from the present 12 per cent in 2001 to 15 per cent.

LG Electronics has achieved record sales of 1 lakh ACs (windows and splits) in 2001. This is first-ever one lakh mark in a calendar year in the air conditioner (windows and splits) category in India. The company has targeted sales of 1.5 lakh units in 2002. It also plans to increase its marketshare from 26 per cent in 2001 to 31 per cent in 2002.

LG plans to launch a slew of products in the sub-300 litre volume segment and DIOS refrigerators as part of its strategy to emerge as a stronger player in the refrigerator market. In 2001, LG had a marketshare of 19 per cent in frost-free refrigerators which it plans to increase to 35 per cent this year. The company achieved a 16 per cent overall growth in refrigerators in the calendar year.

In the washing machines business, LG hopes to increase its marketshare in the semi-automatic segment from 21 per cent to 27 per cent and in the fully-automatic segment from 11 per cent to 20 per cent in 2002. The company also hopes to increase its marketshare in the microwave category from 32 per cent to 35 per cent.