Lg Electronics Unwraps Range

LG Electronics India Ltd, the 100-per cent subsidiary of the South Korean giant, launched its first range of products under the "LG" brand name in the country yesterday.

The company unveiled 10 models of colour televisions, three models of washing machines and eight models of refrigerators in Delhi, Uttar Pradesh and Haryana. With proposed launches in other northern cities by this month, and a Mumbai launch in June, the company plans to have a national presence by August this year.

In the CTV segment, while LG has launched three models each in the popular 20 inches and 21 inches categories, it will have two models in the 14 inches and two more in the 29 inches sizes.

The size of the refrigerators will be in the range of 320 litres to 650 litres, while the washing machines will be of 5.5 kg to 10 kg capacity.

The company plans to set up a network of 800 dealers all over the country and hopes to capture 7 to 8 per cent of the CTV market in the country in the first year of operation. The plan is to sell around 1.4 lakh CTVs in the first full year of operation. Besides, it expects to grab 3 to 4 per cent share of the market in refrigerators and washing machines by the end of the next year.

The company is targeting a first-year turnover of nearly Rs 100 crore, out of which 75 per cent of sales will come from CTVs alone.

Other products on the anvil this year include TV-CD models, handheld computers, handycams and other sophisticated products. The export projection of the company is $100 million in 10 years.

Moreover, LG plans to enter the domestic audio segment next year after current feasibility studies show sufficient market demand. As part of this, it would initially bring in hi-fi audio systems before branching into lower-end models.

The manufacturing facility, being set up at Noida, is expected to begin commercial production by early 1998.