LG Electronics to invest Rs 1,000 cr in India

LG Electronics India is planning to invest Rs 1,000 crore in India in the next two years, a top company official said in Kolkata on Tuesday.

“We are planning to invest Rs 1,000 crore in the next two years in the country. This includes setting up of a new plant or expanding the capacity of existing plants to meet the growing demands. Plans are there for a new plant, but the location is not finalised,” said Soon H Kwon, managing director, LG Electronics India.

The firm currently has two facilities in the country — one in Greater Noida and the other in Pune. The new plant would be mainly for developing 3D appliances. Hence, the new plant is expected to be finalised by the second half of next year. However, he said that the company expects a 25 per cent growth in the Indian market this financial year.

“Last year, our overall business grew by 20 to 30 percent. While air conditioning business was flat, home appliances segment grew by 27 per cent. We expect the overall growth to be around 25 per cent this year too,” he said, during the sidelines of the inauguration of a brand shop at E Mall in Chandini Chowk here.

Indian market contributes 6 per cent of the total revenue of the company, which is about $ 3.5 billion, while China contributes about $ 5 billion. “We want to increase our global share by 12 per cent by 2015,” he added.

In terms of brand shops, the company wants to expand it to 1,600 this year, from the current level of 1,300.