On the back of higher sales of its direct cool refrigerators range, LG Electronics India claims to have sold upwards of one million refrigerators this calendar year.
According to Mr Anil Arora, Head (Refrigerators), LG Electronics India, sales of LG's direct cool refrigerators have grown by 65 per cent during 2004, principally due to the fact that the company started manufacturing refrigerators at its own facilities in the beginning of the year and rolled out a complete range. LG was earlier sourcing its direct cool refrigerator requirements from Voltas.
Sales of the company's frost-free refrigerators increased by 25 per cent in 2004.
"This has been a landmark year for us, with the company crossing the one-million mark in one year for the first time. About 78 per cent of our sales came from the direct-cool segment, and the balance from frost-free. We have a leadership position in both categories," Mr Arora said.
In contrast, the overall refrigerator industry saw a decline in the sales of the direct cool category by 4 per cent while the frost-free category witnessed a 23 per cent increase in sales. In fact, officials point out that the share of the direct-cool category has shrunk from 80 per cent to 75 per cent this year.
Meanwhile, LG has already set targets for the next calendar year, and expects to grow by 75 per cent in 2005. "The industry should see positive growth next year particularly in view of the good growth expected in the agriculture sector. About 70 per cent of our direct-cool sales, and 45 per cent of frost-free sales came from rural/semi-urban areas this year," Mr Arora said.