Consumer durables major LG Electronics India (LGEIL) has announced its financial results for the first half of 2004-05. The company has recorded a sales turnover of Rs 3,360 crore, registering a growth of 45 % over the same period last year.
KR Kim, Managing Director, LGEIL, said, “I am very happy to announce the remarkable results today. This has been possible because of the relentless efforts and dedication of each and every employee who has strived towards achieving this goal. The results make us more confident of being able to build on the success of the first half and further augment our growth with more consumer oriented and feature rich products to achieve our target of Rs 7,000 crore by this year-end.”
In the colour television segment, LGEIL is claiming to have sold more than 1.3 million CTVs during January-June 2004, registering a growth of 50%, in terms of volumes, over the same period last year. In the flat TV sector, LG has more than 25% marketshare. The company leads the refrigerator segment with a share of 26.2% and has recorded a growth of 57% from Rs 503 crore, recorded last year to Rs 715 crore this year. LG claims to have a 39% marketshare in Frost-Free Refrigerator and a 23.7% share in Direct Cool.
When it comes to air-conditioners, in the first half of 2004-05, LG has sold more than three lac units, which is a growth of around 65% over 2003-04. The Korean durables major is claiming to have a marketshare of over 40% in the AC category and this has fetched leadership position for LG with a value turnover of Rs 680 crore.
Washing machine market has garnered remarkable growth of 36% for the company. In the fully automatic washing machine segment volumes have grown by 22% and value by 25%. LGEIL has a 30.7% marketshare in the fully automatic segment and 33.7% share in the semi automatic market. As w e proceed towards microwave ovens, the company is boasting to have recorded a growth of 35%, registering a value turnover of Rs 62 crore. LG is also planning to launch a series of technologically superior range in the later part of the year.
The most hi-activity zone is IT, where LG Electronics has posted a 63% jump in sales revenue in the first half ended June 2004. Sales turnover for the IT division touched Rs 325 crore against Rs 199 crore, a year ago. LG is a market leader in the optical storage devices and has aggressive plans of taking the leadership position in the monitor and PC segment also. LG made a foray into the GSM cellular market in November 2003. The company has managed to record a revenue of Rs 80 crore in the first half of this year.
Dwelling on the financial results, LG India’s Marketing Head Salil Kapoor says, “The results are indeed motivating. This is mainly due to the aggressive marketing on LGEIL’s strategic businesses as NDP, PDPs and mobile handsets as well as on premium home appliances.”