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LG targets Rs 1200 cr from IT products in India

Written by: Staff

New Delhi, Jun 4: LG Electronics, which has emerged as the third largest selling desktop computers in India in less than two years of its launch, is targeting a business turnover of Rs 1200 from its IT division in fiscal 2006-07.

Retaining focus on home personal computers, LG is initiating some aggressive marketing models besides betting on competitive pricings, not only to strengthen its foothold against rivals Hewlett-Packard and HCL but also against the assembled segment.

The IT division grossed in a revenue of Rs 900 crore for the FY06.

''LG which was offering 18 months' warranty against 12 months given by our rivals, would be raising this period to three years from this month,'' LG Electronics India General Manager (Sales and Marketing- IT Products) R Manikandan said here.

The Korean giant, which manufactures 1,50,000 desktop PCs with 35 per cent of its backward integration at its Greater Noida facility, exports about 25,000 machines to the neighbouring SAARC countries.

''The plan is to increasingly use the Indian facilities for meeting PC requirements of South Asia,'' Mr Manikandan said. He said the desktop PCs, LCD monitors and notebooks (laptops) would be the main drivers of growth for the company in the current financial year.

For improving the penetration into the fast growing 5.1 million domestic PC market, LG is gearing up its retail strategy to be close to the home PC users.

The LG CyberShoppes will reach a total of 100 Indian cities retailing desktop personal computers, LCD monitors and a host of other IT products, as part of its effort to ramp up its total IT hardward business to Rs 1200 crore in 2006, Mr Manikandan said.

''Through LG CyberShoppes, we will cover the B,C and D category cities where customers can come and take an informed buying decision,'' he said.

The CyberShoppes will be run by LG franchisees on exclusive basis while the company will run leveraged marketing drive to catch up in the market where HP and HCL enjoy the leadership position with about 18 per cent of the share each. LG, has about eight per cent of the market share, Mr Manikandan said.

LG is strong in home segment PCs but would be now penetrating into the small and medium businesses.


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