New Delhi: Consumer durables major LG on Sunday said its India operations would outgrow the parent company in Korea as it is tipped to increase five-fold to Rs50,000 crore in revenue in the next five years.
Betting big on the country, with decision to invest over Rs5,000 crore in marketing and R&D activities alone over the next five years, the Indian subsidiary has already overtaken neighbouring China, LG Electronics India managing director Moon Bum Shin said.
Touching the size of LG’s US operations is also in sight, he added.
“Every year we are going to grow 30 per cent and in 2015, we may touch the same level as that of Korea as long as India maintains the economic growth of 7-9%,” Shin told PTI.
The Indian subsidiary contributes about 6% to the company’s global operations and hopes to double it by 2015.
Shin said the Korean market is almost saturated, but LG expects its India sales to grow about 30% annually over the next five years, with revenues touching around $8-10 billion. LG’s Korean sales are around $6 billion.
Over the next 10 years, the company expects India to be as big a market for its products as the US - the world’s largest consumer durables market.
Although the US is getting saturated, there is room for growth for LG as its base there is still small, Shin added.
“By 2015, we are targeting 12 per cent from India. As a subsidiary, we are No.1, after the US and Korea... Thanks to the Indian economy which is slightly better than the other western countries,“ Shin said.
LG Electronics India is a wholly-owned subsidiary of Korean major and has clocked a turnover of over Rs10,000 crore in 2008. It is expected to touch around Rs 13,000 crore ($2.5 billion), a 30% growth in 2009.
“... if we maintain same rate of growth that we enjoy in the next five years, definitely we will catch up with Korea and be far better than Korea and may be close to the US,” Shin said.
“May be in the next 10 years we can definitely be able to catch up the United States,” he added.