Energy Efficient ACs

LG, that has plans of grabbing a share of  32 percent by investing 150 crores this year, launched its new range of ACs at an event held in New Delhi recently where Sewoo Park, VP of AC Overseas Markeing, Air Conditioning & Energy Solution Company, LG Electronics, Inc. unraveled the plans of the company to Aadeetya Sriram in an interesting chat.

Adeetya Sriram(AS): What separates these products from the ones which are available in the market?

Sewoo Park(SP):Our products are designed keeping in mind the kind of strategy that the Indian market will accept for its innovation, technology as well as the pricing that we have for these air-conditioners.

AS: What sort of innovation has been implemented keeping in mind the Indian market?

SP: First of all, these AC’s are energy saving, this is something that the Indian consumer want- control over their energy use, as well as the chance to utilize these air-conditioners to the optimum. Secondly, these act as not only your air-conditioners but also as your life conditioners, which explain that these are designed to give health benefits as well.

AS: What is your market share in the country, What has been the growth and revenues for the fiscal year 10-11?

SP: India, as a market has provided us with an impressive share of 29% for the fiscal year. The revenue is projected to be around Rs 2500 Cr in 2010.We expect the market share to increase to 32% for 2011, and the revenue of Rs 3500cr in 2011.The growth for the year 2010 has been 26% CAGR, and we expect the growth for 2011 around 40% CAGR for 2011.

AS: What has India’s role been in the growth of LG globally?

SP:  India is the 2^nd largest market for LG globally after USA. We have plants in Pune at the moment where our manufacturing capacity is 2 million sets per year. We plan to invest around Rs 800cr within next year, which will enable us to increase the production capacity of our plants.

AS: Can you highlight the features of these air-conditioners keeping in mind the needs of the Indian market?

SP: 1.These are Neo-plasma, that guarantees 99.9% pure air.

     2.Low on noise, this assures the sort of performance that comes without any disturbance.

     3.Optimized cooling air-flow.

     4. Designed as per the condition like temperature, which is quite usual in India, they will perform to its capability.

     5.The technology that has been implemented, assuring the consumers saving in their energy bills.

AS: What marketing strategy do you plan to implement for the current brand of products?

SP: We plan to follow the philosophy “Vitalizing You & Your Environment”. We plan to invest around Rs 50 cr on marketing as a whole which comprises of Research, POP, Banners and Hoardings etc.

AS: What are your expansion plans in India for the near future?

SP: We plan to set-up other plants in the country within the next 5 yrs; we expect to attain 32% of the total market share for air-conditioners in the country. Other than that, we will project different kind of strategies and designs keeping in mind the preferences of the Indian con