LG eyes 300% growth in cell biz
LG Electronics is planning to grow its GSM mobile phone business by 300 per cent in 2006 to Rs 600 crore.india Updated: Jan 25, 2006 14:22 IST
LG Electronics is planning to grow its GSM mobile phone business by 300 per cent in 2006 to Rs 600 crore on the back of new model launches and by expanding its distribution network.
"In 2005 we sold close to 4.5 lakh mobile phones and in 2006 our target is 1.2 million," LG Product Group Head (GSM) HS Bhatia said.
"LG is targeting the mobile handset business to contribute Rs 600 crore to the company's total revenues of Rs 9,000 crore," he said.
LG is expecting the mobile phone business to contribute six per cent of its overall India revenues in 2006 as compared to three per cent last year.
By pushing the GSM mobile phone sales, the company is targeting to be the number three player in the market. At present it is fifth largest mobile phone player in the GSM mobile phone handset market.
"The GSM business is undoubtedly going to be the biggest growth driver in 2006. This year we would clearly focus on providing a lot of value additions to upgrade existing basic and mid-end consumer," Bhatia said.
Of the four handsets launched today, three are in the high-end category while one is targeted at the mid-end segment.
For the first time the company has launched a phone priced at upwards of Rs 12,000.
To increase the reach of its products, LG is planning to increase the number of dealers to 20,000 in 2006 from 11,000 in 2005.
The production at the LG mobile phone manufacturing facility has started and the facility is turning out 40,000 phones a month.
"The facility has a capacity of 20 million mobile phones. At present just four models are being manufactured there. This number will go up though the high-end phones would continue to be imported," Bhatia said.