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Rank 6: LG Electronics System India: Starring CDMA, Superhit

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VoicenData Bureau
New Update

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.

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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.

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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.

LG Electronics System India

TURNOVER

FACTSHEET

MD

:

Won-Chul Kim

Area

of Operation
: CDMA infrastructure systems and terminals
Address : 221, Okhla Industrial Estate Phase -3, 



New Delhi 110 020
Tel : 011-6830953
Fax : 011-6845362
E-mail : administrator@lgesys-india.com 
Website : www.lgesys-india.com 
S

W O T
Strength  Dominance in infrastructure and terminal market in India 
Weakness Dependence on regulation
Opportunity WLL (M) and FWT market in new circles all over India
Threat  GSM operators
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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.

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