Innovative technology drives LG’s growth in India
New innovation and latest technology is driving the growth of LG Electronics in India. Innovative product range has helped the company to achieve 26% growth in H1 (January-June) of 2016 when compared to the corresponding period last year, the company’s Director-Sales for South & West Sanjeev Agarwal told The Dollar Business Bureau.
“With the recent launches, we are expecting more than 32% growth in H2 of 2016. Consumers will spend more money to buy electronic goods due to the 7th Pay Commission and good monsoon in the coming festive season during September-November,” he said at LG Tech Show 2016 held for the first time in Hyderabad last week-end.
To cater the festive demand in the country, LG has introduced 20 different models in TV (32”-98” screen size), 30 models of refrigerators and 17-20 models of washing machines. The company is all set to launch RO water purifiers and vacuum cleaners also, Agarwal informed.
“Currently, the consumer durables of LG have a market share of 28-29% in India. The new tech-driven products including OLED 4K TV with Dolby Vision, 21 kg Twin wash washing machine, 1001 ltr door-in-door refrigerators, dual-inverter air conditioners, ovens and air purifiers will further increase our market share in the country,” he said.
Speaking about the competition in smartphone market, he said, “At present, LG smartphones has 6% market share in India and by the end of this year we are expecting to capture 10% market in the country. With all 4G devices, we are mostly catering the premium smartphone segment. We are having wide service centre network which beats any Chinese manufacturer.”
LG India Business Head for Residential Air-Conditioners Vijay Babu, Regional Head for Andhra Pradesh and Telangana Gireesen Gopi, and dealers from both the states have participated in LG Tech Show 2016 in Hyderabad.
“South India is an important contributor to the company’s growth. AP and Telangana have around 8% of the overall market in the country. The company has registered 37% growth in the two states during H1 of 2016 against same period previous year. With the consumers embracing our energy efficient technology, we expect to achieve 42% growth in H2 of 2016,” Vijay Babu said.
The Indian subsidiary of South Korean conglomerate manufactures 90% of the products in the country. Only high-end LED TVs, washing machines, refrigerators and mobiles are imported from South Korea, which contributes less than 10% of the company’s turnover. It has two manufacturing units at Greater Noida and Pune. Noida Greenfield facility is one among the most eco-friendly plants of the company in the world.