The Hindu : Business : STC ties up with India Household to market LG Care products

Online edition of India's National Newspaper
Saturday, Jul 17, 2004

Business

Business

STC ties up with India Household to market LG Care products

The Chairman, State Trading Corporation, Arvind Pandalai (centre), flanked by the Chairman, India Household and Healthcare Ltd., K. P. Jayaram, (left) and the Managing Director, IHHL, Vijay R. Singh, at the launch of LG Care products in New Delhi on Friday. — Photo: Ramesh Sharma

NEW DELHI, JULY 16. Eyeing the Rs. 28,000 crore personal products market, the State Trading Corporation today entered into a Rs. 100 crore tie-up with India Household and Healthcare Ltd (IHHL) for importing LG Care personal products.

STC Chief, Arvind Pandalai, said the tie-up marked the company's foray into trading of FMCG goods that would lead to greater competition among the players in the sector.

"It is a one year import funding assistance from STC and we are targeting sales of Rs. 150 crores in the current fiscal," IHHL Managing Director, Vijay R. Singh, said. Mr. Singh said IHHL, the sole licensee selling LG Care products in India, would also consider setting up a manufacturing unit in the country once the sales touch the threshold mark of Rs. 300 crores. He said talks were on with governments of Andhra Pradesh, Tamil Nadu and Karnataka to consider the possibility of setting up the manufacturing unit.

The seven LG Care product available in variants in all towns with population over one lakh would be soaps, shampoo, detergents, diapers, hair-styling products, cleaners and toothpastes. Mr. Singh said the company products would also be available in rural areas by 2006; IHHL was targeting 3 per cent market share in these goods in the current fiscal. IHHL does not expect profits in the next three years but is targeting a turnover of Rs. 500 crores at the end of the period.

PTI

Printer friendly page
Send this article to Friends by E-Mail

Business