To cater to the rising demand for its consumer products, South Korean conglomerate LG Electronics will invest Rs 350-400 crore (Rs 3.5-4 billion) in its Indian manufacturing plants this year.
Currently, LG Electronics has manufacturing plants in Pune and Noida.
"We will be investing Rs 350-400 crore in our manufacturing plants at Pune and Noida this year. The investment would help ramp up the infrastructure and capacity of the two units, which would help in meeting the rising demand," LG Electronics India's business head (home appliances) Rajeev Jain said.
The Pune plant manufactures refrigerators, colour televisions, air conditioners and mobile phones, while the Noida plant produces all these goods with the exception of mobile phones.
Diversifying its product portfolio in the Indian market, LG is all set to launch a new refrigerator in India before the end of July. The eco-friendly model is expected to save as much as 18 per cent energy.
The refrigerator, which works on a linear compressor, promises to consume less energy and has a low-noise system.
"We will be launching the refrigerator before the end of July. Buying this model would help consumers save energy. The price of this model will start at Rs 65,000 and can go up to Rs 165,000," Jain said.
Moreover, the refrigerator, which is already available in other markets, will come with a 10-year warranty. According to LG officials in Seoul, the company has over 100 patents for its linear compressor technology.
Meanwhile, LG is aiming to increase its turnover in the Indian home appliances segment to more than Rs 5,000 crore (Rs 50 billion) this year. "We anticipate clocking an about 40 per cent rise in annual turnover this year. The increase would be mainly on account of higher penetration levels of our products," Jain noted.
LG's home appliance business includes refrigerators, washing machines and microwave ovens, among others.
Officials with LG Electronics India said that they are expecting a turnover of Rs 19,000 crore (Rs 190 billion) this year, about 30 per cent higher from 2009.
LG to spend Rs 50 crore on health campaign
LG Electronics will spend Rs 50 crore (Rs 500 million) on advertising and marketing activities to spread awareness on health care among the public this year.
Rajeev Jain said that the company had earmarked Rs 50 crore for a health care awareness campaign in 2010. The South Korean entity, which has a strong presence in the country, would be promoting its products, including refrigerators and washing machines that offer "healthier lifestyles" to its consumers.
Jain said that the company had spent Rs 40 crore (Rs 400 million) on the 'Health Plus Campaign' last year, and more money would be invested in the same initiative in 2010.
"We are confident that we will see good response from Indian consumers," he added.
About 80 per cent of these products are manufactured in India.
In the washing machine segment, the entity has models that are based on steam technology, which minimises chances of allergy due to detergents, LG officials said.
