In a move to keep its washing machines abreast with the changing trends in the industry, LG Electronics India plans to invest heavily in the fully automatic machines division.
So far, of the amount invested by LG in the washing machines segment, 70 per cent has been in semi automatic machines, while 30 per cent in fully automatic machines.
“The company has so far invested Rs 140 crore in the washing machine division, of which 70 per cent has been in the semi automatic segment and the remaining 30 per cent in the fully automatic segment. Keeping in mind the changing market scenario, LG Electronics will invest 70 per cent in the fully automatic segment over the next two years,” said Rajiv Jain, product group head, washing machines, LG Electronics, in Ahmedabad on Thursday.
Jain added that Rs 55 crore will be invested over the next two years in the washing machine division. LG Electronics has three manufacturing facilities in India – at Noida, at Ranjangaon near Pune and a third at Gandhidham in Kutch. Washing machines are being manufactured at the Noida and Gandhidham plants.
LG Electronics posted a sales turnover of Rs 6500 crore in the 2004 calendar year, of which sales from washing machines accounted for Rs 400 crore.
“We expect sales of washing machines to grow by around 25 per cent, even as the washing machine industry has been growing at just six per cent in the first quarter of the current year. At present, we enjoy a 38 per cent share in the washing machine market of the country. We expect this attain a share of 40 per cent by the year end,” Jain said.
Of the nine lakh units capacity that the company has, seven lakh are semi automatic and the remaining two lakh are fully automatic.
Jain said that a clear focus on regional markets has been a key to the growth of LG washing machine sales in the country.
He added that based on feedback, the company has been introducing products that are designed to suit Indian needs.
From Business Standard, India