LG Electronics is targeting a market share of 20 per cent in direct cool refrigerators next year with the launch of its new indigenous range of direct cool refrigerators, branded A-One. It’s current market share is around 10 per cent.
LG has set itself a sales target of 5.5 lakh units for 2003 in this segment and a turnover target of Rs 385 crore. The roll-out of the range, developed and manufactured at its Greater Noida plant, will result in a price differential of 10-15 per cent to the end product. By the second half of 2003 LG also plans to set up a compressor manufacturing facility, which should afford it even greater price advantages.
LG had earlier this year earmarked USD 20 million for its new refrigerator line, of which Rs 50 crore has been invested so far.
The new range is in 175 and 200 litre capacity. Its present line-up has 165 and 190 litre models that are outsourced from Voltas. The company will tone down this range which will be limited to ‘strategic markets’ only, mostly B and C class markets. Even after the national roll-out of the A-One range, it will continue to access around 25-30 per cent of fridges from Voltas.
The company will be launching a Rs 10 crore multi-media campaign to support the launch of A-One. The range, with three variants in 175 litres and two in 200 litre capacity, will be in the market by January 2003.