Aremarkable growth of 3,193.8 percent has helped LG Electronics Systems India
Ltd (LGSYS) to cross the four-figure mark in its very second year of operations
in India, an achievement very few companies can think of. This helped the
company in making its entry in the Top 10 Club in a big way. The company netted
an overall turnover of Rs 1,000 crore by selling CDMA infrastructure systems and
CDMA terminals in India.
LGSYS is the only CDMA company which has a direct presence and has a
manufacturing base in India unlike its competitor Hyundai and Lucent in India.
This proves its strong commitment to India. The company occupies the number
one position in infrastructure, fixed terminal, and mobile terminal. Currently,
the company has a market share of 50 percent in infrastructure supply and 65
percent in fixed and mobile terminals. The company has invested Rs 50 crore and
is now focussing on building the service network.
At present, majority of the company’s revenue are coming from incumbent
operators. Most likely, the company will not like to stick to incumbents but
venture out for orders from private operators. The company is heavily betting on
the Reliance order now that the Tata order has been allotted to Lucent. In the
last fiscal, the company has bagged 300,000 lines fixed wireless terminal
(infrastructure as well as terminal) from BSNL worth Rs 689 crore. Though the
third quarter was bad for most of the companies, LGSYS was lucky as more than 50
percent of its revenues was committed in the third quarter of the fiscal.
In this fiscal, the company is also in the race for 500,000 lines of WLL
urban infrastructure to be deployed by the incumbent operator. On the handset
front, the company has supplied around 20,000 WLL handsets to Tata Teleservices
in Andhra Pradesh.
Not only the company has been successful but has also maintained its winning
spree in the SAARC region. The company is active in the SARRC region and is in
the process of bagging a large contract for CDMA 3G -1X system in Nepal from
United Telecom, a JV of VSNL, MTNL, TCIL, and NUPL, the local player. On the
handset front, the company is planning to launch low-end models like TM 160
based on the 3G-1X technology. The company is also planning to launch 4-5 models
supporting WAP, color-screen LCD, and foldable models.
In March 2002, the company shifted its manufacturing plant from Noida to
Pondicherry. The plant has capacity to manufacture 1,200,000 lines per annum of
infrastructure equipment and 1,200,000 terminals per annum in a single shift.
The company has made a beginning for design and development activity in
India, mainly to support its localization plans. It is also planning to utilize
the software expertise of India for remote maintenance of their products.
LGSYS has set up 10 technical support centers throughout India to provide
after-sales service and customer care. Plans are also to market ADSL and VoIP
products by end of 2002 or 2003. All this will open up new opportunities in the
country and will help the company to leverage its brand.