South Korean multinational electronics company, LG Electronics Inc, is planning to make India as its export hub. Currently the company is exploring global markets to increase exports from India.
Ki Wan Kim, Managing Director, LG Electronics India stated that the tension prevailing between South Korea and China is one of the main reasons for the company to look at making India an export hub.
LG already has its two manufacturing units in India (Noida and Pune) through which it exports to the Middle East and African countries. About 10 per cent of sales of LG Electronics India (LGEI) are currently from exports. The company has witnessed high growth rate in the last few years. LGEI had sales worth Rs 22,000 crore in 2015-16.
"On the other hand ties between South Korea and India have improved. Companies in Korea have started to see India as a strategically important manufacturing base not only for India but for other areas. 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," Wan added.
Apart from USA, Korea, Brazil and Russia, India is among the top five global markets for LG. The demand of customers of India is different from their other market consumers. So, the company has appointed the strong local R&D team, which helps in identifying the specific needs of consumers so that they can deliver it to them.
The duty reductions and effort towards GST has helped industry to remain competitive in the market. India is becoming more competitive economically. Indian customers are very complicated and evaluate various aspects of products before they buy. This has enhanced the local demand resulting in the growth of business of the country.
April 26, 2017