India – A flourishing export hub for LG
The Dollar Business Bureau
Impacted by global recession and mounting tension prevailing with China, the Asian country - South Korea is making a strong bid to further expand its footprints in the Indian market, where it sees enormous opportunity for growth.
Against this background, South Korean consumer electronics giant LG is looking at making India its export hub, relying on good ties between the two countries at a time when its overseas shipments from China are falling. The company, with its two decades of presence in the country, has been delivering electronic goods and home appliances which are customised to suit the Indian consumer needs.
“Indian consumers love LG. That’s why we could grow every year and are now positioned as a very trusted, reliable, responsible and a national brand in India,” said Kim Ki Wan, Managing Director, LG Electronics India (LGEIL), on completing 20 years in India.
Because of its state-of-the-art products and strong emphasis on strengthening product leadership and operational excellence, the company is targeting for double-digit growth. LGEIL, which presently has two plants in Greater Noida and Pune is exporting mostly to Saudi Arabia, Iran and to the African countries on the eastern coast of the continent. Around 10% of sales of the company’s Indian arm – LG Electronics India (LGEI), are currently from exports. Last year, LGEI had sales of Rs. 22,000 crores. With a strong R&D team, the company is steadfast in delivering the best to its customers.
On explaining exactly why the company is looking at making India an export hub, Ki Wan Kim said, it is due to tension prevailing between South Korea and China. “Unlike some of the global markets, India has continued to show potential for growth in the last couple of years. So, there are a lot of expectations from the Indian market. India has the potential to be among the top two key markets for us, besides China. We believe that the current government’s push to boost the rural economy will further expand this market,” he added.
Additionally, the company has high hopes attached with the expected implementation of GST – in making India more competitive economically with secured and transparent taxation regime.
“India is not a simple market. Indian consumers are very sophisticated and evaluate various aspects of products comprehensively before they make a purchase decision. This is the reason why we have comparatively seen higher growth than our competitors last year,” he added.