LG plans to invest $50 mn; to hike prices after Diwali

LG plans to invest $50 mn; to hike prices after Diwali
PTI
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First Published: Tue, Oct 14 2008. 05 39 PM IST
Updated: Tue, Oct 14 2008. 05 39 PM IST
New Delhi: Consumer durables major LG Electronics plans to invest $50 million to enhance its manpower and research and development (R&D) in India by 2009, even as it prepares for another round of price hike by 3-5% after the ongoing festival season.
“We want to deploy more R&D people, open learning centres to train people and enhance our manpower. So for we are planning to invest around $50 million in 2009,” LG Electronics India Managing Director Moon B Shin said.
At present, the company has around 700 people in its R&D division and 3,700 employees at its plants in Pune and Greater Noida. The two plants have a total capacity of producing 5 lakh units annually, of which 70% are LCD monitors.
Shin, however, did not specify how many people the firm was planning to hire for its R&D and manufacturing operations.
Under pressure from rising input costs, the company plans another price hike for its products, specially the imported ones.
“After Diwali, we will be studying our sales and profit structure and other cost factors. There are chances that we might increase prices of some of our products by three to five per cent. But our effort is to keep it as minimum as possible,” Shin said.
“Prices of some our imported products like our high-end LCD TV, refrigerator and washing machines may go up. Though we also have our manufacturing facilities in the country, we still import a lot of the material and component from other countries,” he said.
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First Published: Tue, Oct 14 2008. 05 39 PM IST
More Topics: LG Electronics | Investment | Manpower | R&D | Festival |