LG slashes target for exports

LG Electronics India Ltd has slashed its export target for the year 2010 to $1 billion from the $3 billion it had set earlier in the year. Speaking about the company's crossing the $100 million mark in exports, K R Kim, managing director, LGEIL, said, "We expect to end this year with $135 million worth of exports, up from $85 million last year. We plan to reach $200 million before Christmas next year."

When asked why the export target has been downscaled, Kim said the company revised the target based on the performance so far.

Though he admitted LG had been too ambitious in setting the target, he added that the $ 3 billion mark remains still a dream that the company would be working to fulfill. LG has also revised its revenue target this year from Rs 8500 crore (Rs 85 billion) to Rs 8000 crore (Rs 80 billion).

"The first half of the year saw sluggish growth and the second half will not be able to make up for it. So, we have revised our target," Girish Bapat, vice-president, marketing, LG said.

"Exports have been growing at a compound annual growth rate of 82 per cent since 2003 and our product portfolio is widening," said Jatin Madan, assistant general manager, exports, LG, said. LG is planning to shift its export base to the Ranjangaon plant in Pune.

Already the plant is catering to 30-35 per cent of the export market that includes countries in South Asia, Africa and Middle East. IT products and GSM phones together will drive exports in the future, Madan said while expressing concern over infrastructure issues like port congestion and high transit cost and time.

LG is going to focus more on GSM, audio systems and IT products now, Bapat said. Following the launch of the Next Gen Karaoke System, the company will soon launch bluetooth-enabled wireless home theatre system and is also assessing the car audio market.

Also on the cards is the launch of four new GSM mobile phones before the year-ends.