Fast moving consumer goods sector has yet another Korean variant to woo the great Indian consumers. LG Care – one of the 42 broods of the LG Group, has unleashed its range of premium products in seven key categories including detergents, shampoos, toothpastes, soaps, diapers, hair-styling products and cosmetics.
LG Care has entered the Indian market through a sole licensee agreement with India Household and Healthcare Limited (IHHL), set up in November 2003 for managing the LG Care businesses in this country.
Addressing the media, CH Kim, Vice President, LG Household and
Healthcare, said, "India is one of the fastest growing markets in Asia. The
sheer size and potential of the market coupled with low penetration levels
made it attractive for us to venture here."
"The estimated size of the market segment we have forayed into is Rs 60,000 crore and we aspire to pocket at least a three per cent of this market," said Vijay R Singh, Managing Director, IHHL. “There is a vacuum in the premium and mid-priced segment for health and household category and we are here to fill that vacuum. We are following the umbrella branding strategy and aiming to become an FMCG major in three years," he added.
However, the company has invested Rs 12 crore and entertains the possibility of not being able to break even in three years. In the distribution sphere – the crucial area for any FMCG player, LG Care plans to appoint 4,00,000 retail
distribution outlets and 500 distributors in towns with a 1,00,000-plus population, said a company official.
Following a good response from the consumer to its advertisements, LG Care estimates a turnover of Rs 150 crore within the first year of its operations.