LG Electronics India on Thursday said it will launch several new products -- including laptops and notebook computers -- and offer up to 20 models of GSM mobile phones in the Indian market.
The company has posted Rs 205 crore (Rs 2.05 billion) net profit for the year ending December 31, 2003 on 36 per cent higher sales at Rs 4,500 crore (Rs 45 billion) and is eyeing Rs 7,000 crore (Rs 70 billion) sales this year.
However, LG has no immediate plans of coming out with an initial public offer, but officials could not comment on whether the company will apply fresh to the government for waiver of the mandatory divestment condition.
Speaking to PTI in New Delhi, LG's head of sales Girish Rao said some amount of operational restructuring has been completed in 2003, but a lot more will be undertaken in 2004.
"We will expand our branch network from 30 to 40 branches and substantially increase the number of regional area offices to 100. This will enable the company to better control such a large Indian operation and bring in more localised focus."
For example, the company has two branch offices in Karnataka at present -- Bangalore and Hubli -- but it will set up an RAO at Mangalore which will enable LG to have a state-wide presence and give it the ability to service even remote corners besides catering to specific market needs.
Rao said the Korean parent will invest $30 million this year in the upcoming Pune plant, in addition to the $110 million already invested till 2003.
On the sales target for 2004, marketing head Anil Arora said, "A target of Rs 7,000 crore is indeed very ambitious and this is where marketing will play a pivotal role. We are confident we will achieve this target. We will be focusing on a lot of innovative below-the-line activities and promotions round the year."
Exports will be another focus area for LG with export turnover touching Rs 4 crore (Rs 40 million) last year and the company expecting to double it in 2004.
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