LG to set up DVD writer plant in Pune

PUNE: Consumer electronics and home appliance brand, LG Electronics India has signed an MOU with the Government of Maharashtra for expanding its second Greenfield facility at Ranjangaon near here.

KR Kim, president LGE South West Asia and MD, LGEIL announced that the facility would be manufacturing DVD writers from the second quarter of 2006, thus becoming the first company to manufacture the same in the country.

The DVD writer plant in Ranjangaon will be the second largest DVD Writer plant in Asia.

The facility will also have an additional product range to the existing line up. LG Electronics has already begun manufacturing of GSM mobile phones early this year making it the first mobile phone manufacturing company in India, a company statement said.

The plant involves an investment of Rs. 300 crores in the next three years (till 2008) for DVD writers and aims at a turnover of Rs 2600 crore by 2008 that will involve a manpower base of 3500 by the same year (2008).

LG plans to become the export hub for LG DVD writers catering to the European market. The company aims to touch an export turnover of USD 40 million by 2008, which will contribute to 10 per cent of LGEIL's turnover.

Chief Minister Vilas Rao Deshmukh said,” It gives us great pride that Maharashtra is seen as a potential manufacturing and export hub. There will be fresh infusion of funds over the next few years from 2005 to 2010 from LGEIL and we applaud them for their confidence in the country's manufacturing capabilities especially in the state of Maharashtra”.