India to become 3rd largest mkt with Rs 25K cr sales in 3 yrs: LG
New Delhi: Korean consumer durables major LG expects the Indian market to become its third largest in the world within next three years with estimated revenue of over Rs 25,000 crore.
The company's wholly-owned subsidiary LG Electronics India had clocked a turnover of Rs 16,000 crore in 2012 and the country is currently its fifth biggest market globally.
"I want to be an optimist on turnaround of the Indian economy. Our company's rise is also dependant on the overall economic sentiment here. Still, I believe that India will go up to the top three markets for LG in the next three years," LG Electronics India Managing Director Soon Kwon said in an interview here.
With a sales revenue of Rs 16,000 crore, the Indian operations is at present contributing about 6 percent of the global turnover, he added.
When asked how much revenue LG Electronics India expects in the next three years, Kwon said: "It has to be at least Rs 25,000 crore for it to be in the top three markets."
Without sharing any specific number, he said India's contribution to global revenue will also will increase "much more from 6 percent in the next three years".
Currently, the US is the largest market for LG globally, followed by its home market South Korea, Brazil and Russia.
Talking about exports, Kwon said: "We are at present exporting to over 70 countries around the globe and it is around 10 percent of our total sales. Exports is growing and we do not want to lose any business opportunity."
Speaking after unveiling the LG Tech Show-2013, he said the company is expecting its total revenue to grow by 20 percent in 2013, riding mainly on robust performance by its home appliances division.
In order to boost its sales in future, the company is looking to increase the portfolio of goods produced locally at its two Indian plants at Greater Noida in Uttar Pradesh and Ranjangaon in Maharashtra.
"Currently 90 percent of our products are manufactured in India, while the rest comes from different plants located outside. We have plans to increase the localisation in coming months," Kwon said.
The company is currently importing products like front loading washing machines and large frost free refrigerators.
"During the second half of this year, we will start assembly of the front loading washing machines," he said.
Kwon said LG will take a decision by the second half of the year on discontinuation of manufacturing of CRT (cathode ray tube) television sets.
LG Electronics India today launched a new range of flat panel TVs and home theatres. It also showcased a new TV, which is claimed to be the world's slimmest one, and a pocket photo printer at the Tech Show.
The company, which has around 4,000 people on its rolls, is spending Rs 700 crore this year on marketing and promotional activities. It will be 15 percent higher than what it spent during 2012.
Earlier January, Kwon had said the company will put in around Rs 1,500 crore in 2013 on engineering, R&D, developing new products, refreshing equipments, advertising and other promotional activities.