May 12 – Major Korean consumer electronic brand LG has plans to ramp up its manufacturing capacities and product exports from India for its global operations to cut on costs.
LG India is looking at exporting products to mature markets eventually growing its exports from 15 percent of turnover to 30 percent by 2012.
The Indian outfit of LG is the biggest consumer electronic maker in the country in terms of revenue. In 2008, it posted Rs 10,730 crore turnover with a goal and plans to grow by 15 percent this year.
LG Electronics India managing director Moon B Shin told the Economic Times: “We are currently drawing up a plan to increase product sourcing from India. India is already a major export hub for the Middle-East, Nepal and Bhutan, and we are further looking at Europe & Central Asia. The idea is to grow export revenues by 50 percent year-on-year.”
LG India is preparing for the time when sourcing activities from the country will increase starting from July when consumer demand is forecast to return. “The manufacturing quality in India is as good as in Korea and we maintain similar quality control norms. We have seen India origin products are accepted quite well globally,” said Mr. Shin.
The company will have its sales force focus on growth engines like GSM phones and flat panel display products. Mr. Shin added:“In fact, we recorded a 22% growth in sales in the January-March quarter, compared with last year. This is possible due to new product launches and strategic promotional campaign.”
