Eyeing a booming consumer durables segment, LG Electronics India has set an ambitious revenue target to outclass industry growth standards. The company is looking at strengthening its offerings through investment in research and development (R&D).
“At 20-25% annual growth, the consumer electronics’ market in India is expanding more than any other market globally. We expect the market to grow at that speed for the next 4-5 years. LG India will outgrow the industry growth,” said Soon Kwon, president, south west Asia, and managing director, LG India. With Rs 16,000 crore revenues in 2010, the company is eyeing a revenue target of Rs 20,000 crore by 2011 end.
For the South Korean major LG Electronics, India is already one of the best performing markets from over 50 different overseas operations. At number three — just after the US and Korea — LG India contributes around 6% to the company’s global revenues.
“Without the R&D support here we cannot make any products or add innovations. We have about 350 R&D engineers currently and the number will grow significantly. There will be more R&D-related hiring and more resources will be dedicated for it,” said Kwon.
The company will dedicate a significant amount of the Rs 800- crore investment earmarked in 2011 towards R&D initiatives.