LG Electronics Ltd, plans invest approximately Rs 500 crore in its India operations over the next three years to rapidly expand its capacities and product portfolio.
The company's short-term plans to aggressively increase market share includes setting up a greenfield unit through a third party manufacturing agreement in Jammu & Kashmir where the Government is offering a variety of sops to attract investments to the strife-torn State.
The company will invest Rs 50 crore in the next six months in J&K where it plans to manufacture the entire range of the consumer and home appliances to service markets there and in Himachal Pradesh, Madhya Pradesh and Punjab, he said.
In addition to the $25 million invested in its manufacturing line for fully automatic and semi-automatic washing machine range, LG was now investing an additional $10 million for a new washing machine model development he said.
Meanwhile, the company, which launched its latest colour television, the LG Soundmaster 100 with a host of new technology and features, is planning to step up sales of its CTVs in the next six months with a view to increasing market share from 12 per cent in 2001 to 17 per cent by end-2002.
The company has set a target of 1 million units of CTVs in the current year. Meanwhile, a television-manufacturing unit, acquired by LG in Nashik to manufacture conventional CTVs, has recently commenced production of the new Flatron range of televisions and will also manufacture microwave ovens, washing machines and other consumer appliances by the end of the year.
LG, which recently forayed into the audio business by soft-launching its high end products in Delhi and Gujarat, would nationally roll out its premium DVD entertainment players nationally before the festive season, he said.
The company is meanwhile also restructuring its service network with a view to adding more customer value, according to Mr Kim who said modern master authorised service centres (MASC) would soon replace some of the existing authorised service centres. The company would invest Rs 10 crore this year in these centres, he said pointing out that at least 30 per cent of its 100 strong authorised service centres would be converted into MASC's by the end of the year.