LG to invest Rs 10,000 cr in Gujarat

AHMEDABAD: Korean consumer electronics major, LG Electronics is entering Gujarat, perhaps the first company to announce the investment in a state ravaged by earthquake and sectarian riots. This comes in the wake of tax exemptions that the government has announced to give a facelift to the state.

It is pumping in more than Rs 10,000 crore by the end of this decade in its manufacturing plans. Known for its aggressive marketing and price positioning, LG is entering into contract manufacturing arrangements with local producers. "As always, the quality control and the testing would always be maintained by the company standards," K R Kim, Managing Director, LG announced.

In the strategy that LG has drawn in the next two years, the idea of 'creating markets' for its products would be on the top line. But the bottom line would be that many of its products are niche and have a small market segment. Expecting an increase of 40 percent this year, the Gujarat entrance would net the company a sale of nearly Rs 200 crore.