PCs to play an important part in LG's growth in India

Our Corporate Bureau
13 July 2005

Hyderabad: After having cornered a substantial share of the consumer electronics market, LG Electronics India now expects its personal computer business to replicate the success and clock revenue of $250 million in 2005.

"LG's overall revenues in India is expected to be $2.04 billion in India of which 12 per cent would come from the personal computer business," R Manikandan, general manager, sales and marketing — IT Products, LGEIL said.

He said the share of PC business is increasing every year. "In 2003, the share was 10 per cent in 2004 and will be 12 per cent in 2005."

In 2003, LG's revenue from IT products was $99 million and increased to $157 million in 2004. This year it is expected to grow to $250 million.

While LG expects its PC shipments to grow 37 per cent in unit term, in revenue terms it is expecting a growth of 60 per cent.

"To ensure that revenue growth outpaces unit growth in a market where per unit realisations fall every time, we will concentrate on high-end products," Manikandan said. For further growth, the company is planning another push in the smaller towns to increase geographical coverage.