LG's Pune plant to increase turnover from Rs 192 cr to Rs 600 cr

New Delhi, May 7: Targeting the booming West Asia and South East Asian markets, the Indian arm of Korean electronics giant LG will increase its turnover from Rs 192 crore last year to Rs 600 crore this year, a top company official said.

Speaking to UNI, LG's GSM head in India H S Bhatia said the Pune plant would mainly cater to the export market of South East Asia, Nepal, Bangldesh, United Arab Emirates and Dubai.

The plant has an installed capacity of 20 million GSM phones and produces up to 80,000 phones a month, that also caters to the domestic demand.

LG Electronics India Pvt Ltd (LGEIL) in the initial stage plans to target 10 per cent of its total production from the Pune plant.

The main products in focus for this year would be mobile handsets and laptops with the company aiming to tap the entry level market in tier II and tier III cities, and the higher version models in the metros.

The price of LG laptops, which is presently Rs 30,000, is expected to be slashed to Rs 20,000 in the next two years. Similarly the handsets prices for entry level colour models will be reduced to Rs 2,000.

Mr Bhatia said India is one of the most important markets for LG GSM and the company plans to enhance its market share from 3.5 per cent to 9 per cent in 2006.

''The vision for LG Electronics this year is to grow by 300 per cent in the GSM handset business,'' Mr Bhatia said. The company would double the dealer network in 2006 from 11,000 to 20,000, he said.

Started in 2004, the plant is located 50 KMs away from the city at Ranjangaon and covers over 50 acres of land. ''The plant has enabled LGEIL to expand its consumer reach and ensure better supply chain management. LG India aims to be the export hub for LG worldwide catering to the West Asian and African markets from this facility,'' Mr Bhatia said.

Last year LG launched its range of 3G handsets becoming the first company in India to unveil 3G handsets, which according to Mr Bhatia seems to redefine the mobile usage experience.

These Universal Mobile Telecommuications System, (UMTS) handsets offer a download speed of 384 kbps as against a normal GPRS speed of 48 kbps and allow for live video streaming capability, video conferencing, 3D gaming, conitnuous video recording, auto launch browser and USB support.

The company is currently at the number five position in GSM market and targets to become the number three player before the end of the year. It retails its GSM handsets from both the CE/HA certified outlets as well as GSM dealers to ensure easy accessibility to end consumers.

UNI