'We expect to emerge as a leading player'

With most of the handset manufacturers coming into the
market with variety of schemes, how is LG going to emerge as a reputed GSM
handset brand in this competition?

We are in the GSM handset business in India for the last 2years compared to
other players. However, in this short duration we have created our own brand
name in the market. We are taking up some major plans to popularize our product.
We are banking on our good-looking phones; with special features and aggressive
pricing, to emerge as a leading market player.

What is your current market position? Are you planning
to launch any new handsets this year?

Currently, we are at No 5 position in the GSM market. We only manufacture
color phones. We are targeting to capture the No 3 position in the market by
year-end. Our current market share is 3.5% and we are targeting to tap 8 to 9%
in 2006. We are planning to launch 17 exciting models in the market during this
year.

What is your vision for LG Electronics in 2006? With
around Rs 190 crore turnover in 2005, have you set targets for this year?

Our vision is to grow by 300% in this business. We are targeting to achieve
a turnover of Rs 600 crore in 2006. We are expecting huge revenue this year. Our
market survey says that in the year 2004, 6 mn B&W phones were sold and
after 2 years the customers are ready for a change to the color segment. So, we
are looking forward to target these customers, by offering a competitive price.

What are the strategies LG is going to adopt to reach
the No 3 position in the GSM market space by 2006-end?

We are going to double our dealer network during this year. Currently, there
are 11,000 GSM dealers across the country, which will be almost doubled to
20,000. Our products will also be showcased and advertised across the outlets
through the network.

We are also planning to organize some mobile gaming
championships to popularize our handsets among the youngsters. We have also
chalked out plans to showcase our handsets in the theatres and sponsoring
fashion shows.

The GSM plant at Ranjangaon, Pune has the manufacturing
capacity of 1 mn handsets. Has this plant helped LG to expand its consumer
reach? Do you have any plans to export handsets?

Yes, this plant set up in 2004, has helped us to penetrate into the
competitive Indian market and has ensured better supply chain management. The
manufacturing hub in the country has helped up to reach the rural masses also,
as the telecom operators are currently targeting the rural market.

Pune, is soon going to be a major hub for export. We are
planning to export 8,000 to 10,000 handsets to other countries across the globe.
We will be exporting our products to South East Asia, Pakistan, Middle-east,
South Africa, and Kenya. We are also in talks with some other countries to
market our products.

Bhaskar Hazarika

vadmail@cybermedia.co.in