LG expects FY09 revenues at Rs 14,000cr

Korean electronics giant, LG India, expects to close the current fiscal with Rs 14,000 crore in revenue, a growth of about 25 per cent over the previous year.

"We expect our topline to grow to Rs 13,500-14,000 crore by this December-end. Last year, we clocked a sales of Rs 10,500-crore," LG Electronics, Director Marketing, V Ramchandran, told reporters here today.

The company is also targetting a compounded annual growth rate (CAGR) of 25-30 per cent in revenue over the next three years, he said.

The consumer durables manufacturer sells flat panel TVs, air conditioners, refrigerators, washing machines, microwave ovens, audios and vaccum cleaners in India.

"LCDs, refrigerators and washing machines would be drivers of this growth. We expect sales to grow by 35-40 per cent because of the festive season," Ramchandran said.

However, the company expects a hit of about 25-30 per cent in sales because of floods in south India.

"Our sales will be lower by 25-30 per cent in Andhra Pradesh and Karnataka and some parts of Maharashtra. Our supply line has been affected deeper south in Tamil Nadu and Kerala," Ramchandran said.

LG, which presently has a 27 per cent share in the home appliances market, plans to increase it to 30 per cent by next year by launching new products.

Ramchandran said that the company has earmarked Rs 600 crore for marketing and R&D this calendar year.

LG has plans to re-enter the laptop business in India with the launch of mini-notebooks by this year-end.

The company had earlier this year in February stopped selling laptops in India due to financial non-viability.