LG electronics India Ltd would invest Rs 55 crore (Rs 550 million) in plant and machinery and product development in the country, which would include manufacturing front-loading washing machines.
LGEIL would pump in Rs 30 crore (Rs 300 million) on plant and machinery for producing front-loading washing machines, which were currently imported, while Rs 25 crore (Rs 250 million) would be spent on new product development, Rajiv Jain, product group head of LGEIL told reporters here after launching the new range of kitchen and laundry solutions.
He said that the investment would be made from September this year in the company's Noida or Pune plant, which would be spilled over to 2006.
Jain said that LG has been a leader in the washing machines segment with a current market share of 37 per cent, which was likely to go upto 40 per cent this year.
With the launch of dishwashers and dryers the company's aim was to consolidate further by specifically designing premium products to cater to the needs of Indian consumers.
He said that at present, the market for this range of kitchenware was small in the country, but its potential was high.
Salil Kapoor, head of marketing of LGEIL said that the company has fixed a stretched turnover of Rs 9,000 crore (Rs 90 billion) in 2005. It had achieved a turnover of Rs 6,500 crore (Rs 65 billion) in 2004.
Turning to the GSM mobile phones, Kapoor said that it has plans to manufacture GSM mobile phones in its Pune plant.
To a question, Kapoor said that the company has no immediate plan to float an IPO.
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