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LG Electronics India is setting up a mobile phone plant at Ranjangaon, around 50 km from Pune. The company's mobile phone production will commence from the year 2005.
Giving details of the company's plan L G India vice chairman and CEO S S Kim said that the mobile phone production would commence as part of the second and third phase of expansion of LG in India.
According to him, the company has not only chalked out invest plans of $60 million in India by the year 2010, it also aims to produce 20 million units of GSM handsets of which 50 per cent will cater to the export market. Kim further said that the announcement is in tune with its strategy for attaining an overall market leadership in the Indian GSM handset market. LG expect its total investment is India to touch $ 250 million by 2010.
Kim was in Pune for the groundbreaking ceremony for its second greenfield facility at Ranjangaon as part of its second phase of expansion. This facility, a wholly owned subsidiary of LG Electronics India, is spread over 50 acres and will manufacture color monitors besides color televisions, air conditioners, refrigerators, washing machines and microwave ovens by the end of 2005.
According to Kim, the Pune factory is in line with the parent company's strategy of using the Indian subsidiary as an export hub for several South Asian countries. The plant that involves an investment of Rs 150 crore ($32 million) till 2004 will commence operations soon.
LG India will become the export hub for LG worldwide catering to the Middle East and African markets. The company aims to touch an export turnover of thee billion dollars by 2010, which will contribute to 30 percent of LGEIL's turnover. While the company expects mobile phones and IT products to contribute nearly 65 percent of its turnover, it expects the remaining 35 percent to come from consumer electronics and home appliances business.
Speaking at the occasion, LG Corp chairman and chief executive officer Bon Moo Koo reiterated that India was an important market and LG India was top priority for investments. Koo indicated at fresh infusion of $250 million over the next six years- from 2005 to 2010-in the company's India operation.
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