LG to invest Rs 900 cr in its Pune facility

New Delhi, Jun 9 (UNI) LG Electronics India (LGEIL) which today announced the commencement of its Greenfield facility at Pune, said it will pump in Rs 900 crore in this facility by 2010.

''The encouraging optimism that the Indian consumer durables market has to offer to LG has driven us to invest Rs 900 crore for the manufacturing facilities at the Pune plant, out of which Rs 300 would be invested in DVD writers. The sum will include our partner investments as well,'' Pune Factory Head Sachin Saxena said.

Currently the facility, situated at Ranjangaon, manufactures about 6 lakh refrigerators, 10 lakh units of colour televisions, 4 lakh microwave ovens and 10 lakh units of GSM mobile handsets per month.

''The Greenfield facility manufactures premium end models of the product which are primarily for exports. The disk drives manufactured here will cater mainly to the European markets,'' LGEIL South Asia President Managing Director K R Kim said.

The plant also aims to ramp up its manpower base to 1,500.

The company aims to touch an export turnover of 450 million dollars by 2008.

LGEIL, a wholly owned subsidiary of South Korea-based LG Electronics, achieved a turnover of Rs 7500 crores in 2005 and has a manufacturing unit at Greater Noida.

UNI CS RA HT1915