The Hindu Business Line : LG Electronics posts Rs 205-cr net profit

Mr Girish V Rao, Head Sales, LG Electronics India Pvt. Ltd., with Mr Anil Arora, Head, Marketing, during a press meet in the Capital on Thursday. — Kamal Narang

New Delhi , Jan. 22

THE Korean durables and electronics major, LG Electronics India Pvt Ltd (LGEIL), has posted a net profit of Rs 205 crore for the year ending December 31, 2003.

The company has registered a turnover of Rs 4,500 crore, a growth of 36 per cent vis-a-vis 2002, with individual contributions being 46 per cent from consumer electronics division, 44 per cent and 10 per cent from home appliances and IT divisions respectively.

Sharing the company's business strategy for 2004, Mr Anil Arora, Marketing Head, LGEIL said, "The company is targeting a sales of Rs 7,000 crore." Agreeing that it an ambitious target, he said, "This is where marketing will play a pivotal role."

Commenting on the results, Mr Arora said, the consumer electronics division has recorded a growth of 37 per cent at Rs 2,049 crore contributing 46 per cent to the total turnover. In the consumer electronics segment the key focus area in 2004 will be the high-end products, Mr Girish V. Rao, Sales Head, said. "The target for this division for 2004 is Rs 2,600 crore, a growth of 27 per cent over 2003," he said.

The home appliances division has clocked a turnover of Rs 1,996 crore contributing to 44 per cent of the total turnover, an increase of 32 per cent over last year. According to Mr Rao, "home appliance division is expected to make major dents in the Indian market and is expected to grow by 67 per cent over 2003. This division expects to touch Rs 3,340 crore in 2004, contributing about 48 per cent to the total turnover."

"For the IT division the company is targeting a growth of 70 per cent at Rs 760 crore in 2004," he said.

The foray into GSM mobiles in the latter half of 2003 has made a mark in the market and the company hopes to be the number two player by the end of 2004. "To achieve this the company has set a target of Rs 350 crore turnover by 2004," Mr Rao said.

The company will make a further investment of $30 million (about Rs 136 crore) in its second plant at Pune, which is to go on stream in August this yearLG proposes to double its exports in 2004. "Exports will be another focus area," Mr Rao said. The exports turnover of the company has touched Rs 4 crore in 2003, which is 100 per cent increase over last year. "Buoyed by this success, the company hopes to achieve another 100 per cent and touch the Rs 8 crore mark in 2004," he told Business Line.