New Delhi: Korean consumer durables maker LG Electronics on Tuesday said it will invest Rs 1,500 crore in India this year to ramp up production and market the brand.
“We will invest Rs 800 crore to increase our manufacturing capacity this year and another Rs 700 crore on brand building and marketing activities,” LG Electronics India Pvt Ltd (LGEIL) COO Y V Verma told PTI.
The investment will be aimed at achieving the turnover target of Rs 20,000 crore set by LGEIL for 2011.
“We did around Rs 16,000 crore last year and this year we are targeting a 25 per cent increase in the total turnover at Rs 20,000 crore,” Verma said.
He said the company would focus on product categories such as flat panel TVs, air conditioners and mobile phones to drive growth in India.
Commenting on manufacturing capacity expansion, Verma said the company is setting up a new production line at its existing facility in Pune for refrigerators.
“We are also increasing capacity for other products such as LCD TVs,” he added without giving details.
On marketing front, LGEIL has been investing funds to position the brand LG as a premium brand.
“The Rs 700 crore marketing budget would be focused on positioning the brand in the premium segment,” Verma added.
With an intention to expand reach of its products in rural markets, the company has identified 16 states in the country to conduct consumer research.
“We have identified 16 states, including Andhra Pradesh, UP and Punjab, to understand consumer demand in rural markets and enhance our distribution network,” Verma said.