LG to enhance India operations
By Our Corporate Bureau | 08 Nov 2001
Mumbai: LG Electronics, the consumer electronics major, plans to further enhance its position in India by making additional investments. The company, which manufactures colour television (CTV), refrigerators, microwave ovens and air-conditioners, is already a major player in the country.
Its market-share in CTV stands at 12 per cent, frost-free refrigerators 30 per cent, direct cold refrigerators 10 per cent, microwave ovens 32 per cent and air-conditioners 25 to 26 per cent. Speaking to the media on 6 November in Chennai, Dr Yasho V Verma, vice-president (HR) and MD, said the company is planning to invest anything between Rs 450 crore to Rs 500 crore spanning over a period of four to five years.
Investments would be made at 1) Expanding the capacity of its Noida unit, where the company is already manufacturing CTVs, refrigerators and air-conditioners. The unit will begin manufacturing washing machines next year and a compressor would be set up after that. 2) Set up an additional manufacturing unit, to be located in Gujarat or somewhere near Chennai. The decision on the exact location, said Verma, would be taken by the middle of 2002.
The company, which began operations in India in 1997, has generally done well, having doubled its turnover every year. Currently placed at Rs 1,900 crore, the company plans to increase the same to Rs 2,500 crore by the end of the current year.
LG has laid special emphasis on productivity, reducing rejection levels and reducing costs. For this it has been training its employees so as to help achieve desired levels of productivity. Citing an example of having achieved higher productivity, Verma said the same assembly line is now churning out 2,200 units, as compared to 800 units earlier. The company plans to train 650 employees and vendors this year across 18 centres.
