LG to invest Rs 10,000 crore in Gujarat

AHMEDABAD

Korean consumer electronics major, LG Electronics is entering Gujarat.

Perhaps the first company to announce investments in a state ravaged by

earthquake and sectarian riots. The state was badly in need of investments,

though the company is doing no favor but is availing tax exemptions that the

Government has announced in the quake-affected region of Kutch.

LG is pumping in more than Rs 10,000 crore within the decade with its

manufacturing plans.

Known for its aggressive marketing and price positioning, LG is entering

into contract manufacturing arrangements with local producers. "As always,

the quality control and the testing would be maintained to meet the company

standards," says KR Kim, MD, LG Electronics.

Besides manufacturing, LG wants to 'create markets' for its products

extensively in the country. While it wants to lay emphasis on products

positioned at niche markets, its efforts to gain further marketshare with

its mass products would continue. It has ambitious plans to increase its

marketshare by 40 percent this year, with Gujarat contributing a sale of

nearly Rs 200 crore.