LG to invest Rs 1,000 cr for capacity building

Global consumer electronics major LG Electronics will pump in Rs 1,000 crore in the next two years for capacity building and possibly a third manufacturing unit.

"We are planning to invest Rs 1,000 crore in the next two years to expand capacity. We have not yet decided to go for a third plant or expansion in the existing one of the two production facilities," LG Electronics India Managing Director Soon H Kwon said.

The proposal for the third plant was mooted at least three years ago, but did not fructify for undisclosed reasons.

Kwon, while inaugurating a company brand shop, did not speak about the cause of delay in the plan, but remained bullish on the Indian market that had potential to exceed the Chinese market by 2015.

 

"LG India currently contributes about 6% of LG's global turnover. We are aiming to increase this to 10-12% by 2015 and possibly exceed China's turnover which is between $4-6 billion," Kwon said.

The new facility will take care of manufacturing new generation products in the country, like 3D TVs.

The company said it was registering a growth of 20-30% so far in 2011 depending on product categories.