LG Electronics to double Indian sales by 2015

CHENNAI, INDIA: South Korean consumer durables manufacturer LG Electronics is planning to double its business in India by 2015, focusing on home appliances as well as information technology (IT) products while expanding its production capacities, a top company official said Thursday.

"The growth rate of Indian consumer durable product segment is the highest in the world. We see 25 percent average annual growth and none of the other countries where LG is operating does not show this much growth," Soon Kwon, managing director, LG Electronics India Pvt Ltd and LG's president for southwest Asia, told reporters here.

LG Electronics will be focusing on IT products as a part of its strategy to double its sales by 2015 while launching new product ranges in the home appliances segment, he said while launching a new range of washing machines and microwave ovens.

Soon said the company will be investing around Rs.700 crore in expanding capacities at its two Indian plants - one at Noida near New Delhi and the other in Pune in Maharashtra.

Queried about plans to set up a facility in south India that is expected to contribute around 31 percent of the company's 2011 targeted turnover of around Rs.20,000 crore, he said: "We have a plan to expand capacity but not decided on a plant in south India."

LG Electronics closed 2010 with a turnover of around Rs.16,000 crore contributing about six percent of LG's global revenue.