LG India aims 20% revenue jump in 2013

The consumer durables major will invest around Rs 1,500 cr this year on various segments

Consumer durables major LG Electronics India today said it expects total revenues to grow by 20% in 2013, riding on robust performance by its home appliances division.

The company, which is looking to close 2012 with a low single-digit rise in its turnover due to overall slowdown in Indian economy, will invest around Rs 1,500 crore this year on various segments.

The Indian subsidiary of the Korean consumer durables major also said it will have to review its investment strategy here if the market does not improve "in the next few years".

"In this year, we are expecting to grow our overall business by 20%. Our growth driver will be our strong portfolio of home appliances," LG Electronics India Managing Director Soon Kwon told PTI here.

He said contributions from refrigerators are expected to increase to Rs 5,300 crore in this year compared to Rs 4,570 crore in 2012.

"We are the market leader in home appliances division and we have a very robust product portfolio. We will continue to be a strong performer and we are targetting a revenue of Rs 8,300 crore from this segment," Kwon said.

The company is, however, expecting an over 30% fall in CRT television segment, Kwon said, adding "We will phase out the CRT TVs in future, but no timing has been decided yet".

When asked about revenue for last year, Kwon said: "We will announce the detailed results in next one week. It will be a very very minimal growth in low single digit."

LG Electronics India had clocked a total revenue of around Rs 16,000 crore in 2011.

During 2012, the home appliances division of the company grew by 15%, while the CRT TV sales dipped by 30%, he said.

"Our industry had a struggling year in 2012. The overall Indian economy also remained sluggish and it was aggravated by rupee depreciation... If the market goes like this in the next few years, then we have to give a serious look on our investments here, but not now," Kwon said.

Talking about investment plans, he said the company will put in around Rs 1,500 crore in this year on engineering, R&D, developing new products, refreshing equipments, advertising and other promotional activities.

LG Electronics India today rolled out a range of 39 premium refrigerators in the country, priced between Rs 12,850 and Rs 41,300.

"With this new series, we are expecting the refrigerator division to grow at a rate of 20%, targetting a turnover of Rs 5,300 crore, and aim a market share of 38% in the segment by the end of 2013," LG Electronics India Director (Home Appliances) YV Verma said.