The Hindu : Business : LG expects pick-up in TV sales

Online edition of India's National Newspaper
Wednesday, Jun 22, 2005

Business

Business

LG expects pick-up in TV sales

Launches a range of products

— Photo: Shanker Chakravarty

SHIFTING CONSUMER PREFERENCE: The Vice President, Digital Display, LG Electronics, Havis Kwon (left) with the Deputy Managing Director of LG Electronics India, Moon B. Shin (right), launching 71 inch plasma television in New Delhi on Tuesday.

NEW DELHI: Even as it expects colour TV sales to grow 25 per cent this year to three million units, consumer electronics giant LG Electronics India (LGEIL) on Tuesday said "it is too early" to comment on any adverse impact a deficient monsoon can have on its sales.

Rural markets contributed as much as 65-70 per cent to sales and poor rains could make a dent, said LGEIL Business Group Head (Consumer Electronics and GSM), C. M. Singh. The company expected to increase its market share in the CTV market to 30 per cent this calendar year from 24 per cent in 2004, he said.

"Out of the total ten million units the market is going to absorb in 2005, we expect to corner three million units,'' he said. CTV sales contribute about 40 per cent to overall revenues of LGEIL, a wholly-owned subsidiary of South Korea's LG Electronics.

LGEIL's revenues in 2004 stood at Rs. 6,500 crore and the company hopes to grow to Rs. 9,000 crore this year.

The company, which entered India in 1997 and has manufacturing facilities at Greater Noida and Pune, sells CTVs, air conditioners, refrigerators, washing machines and mobile phones in India.

The company announced a slew of launches in the high-end CTV segment.

These included a 71-inch Plasma TV and a 15-inch wireless LCD TV.

Mr. Singh said the company today offered more than 50 models in the CTV market.

He said gradually there was a shift in consumer preference to flat TVs from the conventional TVs.

Elaborating, he said while in 2003 conventional TV sales were over 80 per cent, in 2005 it was expected to go down to about 55 per cent.

"The flat TV market is growing at a rapid pace and we expect them to be the mainstay in the future,'' he said.

In 2004, the company sold 7.5 lakh flat TV units and 1.6 million conventional TVs. — PTI

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