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Korean consumer durables major LG expects the Indian market to become its third largest in the world within the next three years with an estimated revenue of over Rs 25,000 crore.
The company's wholly-owned subsidiary LG Electronics India had clocked a turnover of Rs 16,000 crore in 2012 and the country is currently its fifth biggest market globally.
"I want to be an optimist on the turnaround of the Indian economy. Our company's rise is also dependent on the overall economic sentiment here. Still, I believe that India will go up to the top three markets for LG in the next three years,"LG Electronics India Managing Director Soon Kwon told PTI in an interview here.
With a sales revenue of Rs 16,000 crore, the Indian operations is at present contributing about 6 per cent of the global turnover, he added. Asked how much revenue LG Electronics India expects in the next three years, Kwon said: "It has to be at least Rs 25,000 crore for it to be in the top three markets."
Without sharing any specific number, he said India's contribution to global revenue will also increase "much more from 6 per cent in the next three years".
Currently, the US is the largest market for LG globally, followed by its home market South Korea, Brazil and Russia. Talking about exports, Kwon said: "We are at present exporting to over 70 countries around the globe and it is around 10 per cent of our total sales. Exports are growing and we do not want to lose any business opportunity."
Speaking after unveiling the LG Tech Show-2013, he said the company is expecting its total revenue to grow by 20 per cent in 2013, riding mainly on robust performance by its home appliances division. In order to boost its sales in future, the company is looking to increase the portfolio of goods produced locally at its two Indian plants at Greater Noida in Uttar Pradesh and Ranjangaon in Maharashtra.
"Currently 90 per cent of our products are manufactured in India, while the rest comes from different plants located outside. We have plans to increase the localisation in coming months," Kwon said.
The company is currently importing products like front loading washing machines and large frost free refrigerators. "During the second half of this year, we will start assembly of the front loading washing machines," he said. Kwon said LG will take a decision by the second half of the year on discontinuation of manufacturing of CRT (cathode ray tube) television sets.
LG India today launched a new range of flat panel TVs and home theatres. It also showcased the world's largest and slimmest, next-generation 55 inch OLED television is only 4 mm thin and weighs less than 10 kg. The company also showcased another innovation called the LG PD233 Pocket Photo, a smart mobile printer. This portable printer can be connected to smartphones or tablet-PCs with Bluetooth, NFC or an USB stick.
The LG laundry washing machine is the fastest and largest capacity front-load washing machine with 6 Motion Direct Drive Technology. This washer enables consumers to wash more clothes per load including large, bulky items such as king-sized comforters. It consumes less energy and water compared to any conventional washing machines.
