The Indian unit of South Korea's LG Electronics plans to spend Rs 1,400 crore over three years to hike capacity and build a third factory, possibly in Chennai, as it looks to step up production in a key market poised to become its second-largest by revenues.
“This year LG India will become a clear No. 3 and over the next few years, will overtake sales in South Korea where the market is flat," said MB Shin, CEO at LG Electronics India, adding that India is now neck-to-neck with Brazil and Russia as the third-largest contributor to global revenues behind the US and South Korea.
LG's expansion plans come after it has set a 45 per cent revenue growth target for 2010, the highest in six years, to generate Rs 19,000 crore in sales. The company sees sales to be largely driven by demand for LCD TVs and GSM handsets.
The company reported a 40 per cent rise in sales in July-December 2009 from a year ago that helped total revenue for 2009 grow 21 per cent, aided by robust sales of home appliances and LCD TVs.