LG top-end goods may get dearer

LG Electronics India Pvt Ltd, the Korean consumer durables and electronics major, would look at increasing prices of its highend refrigerators and washing machines by around three per cent due to the hike in steel and oil prices, primary components for refrigerator and washing machine manufacturing.

According to Moon Bum Shin, managing director of LGEIL, "We will take a call in a few months. But price hike will be reflected only in the high end models as low end models are usually bought by price-sensitive consumers and we do not want to cause any discomforts there."

LG's high end refrigerators are priced between Rs 50,000 and Rs 1,20,000. LG's high end washing machines are priced at Rs 39,000. LG is also investing Rs 360 crore on brand building.

The aim is to reach the Rs 11,000 crore turnover by the end of 2008, from Rs 9,500 crore in 2007. LG is also planning to launch air purifiers and wine cellars in the Indian market this year, to be initially imported from Korea.

"These will help us enter the 'health' category and prices are still being worked out," Shin said.

LG is also looking at India-specific products using local sourcing to be price competitive. LG would spend close to five per cent of its turnover on research and development. The global revenue of the company is $42 billion.