The Hindu : Business : LG's second unit in Pune

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Wednesday, Sep 07, 2005

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LG's second unit in Pune

Signs MoU with Maharashtra Government for a Rs. 900 cr. plant

— Photo: Paul Noronha

GREENFIELD PROJECT: The Managing Director of LG Electronics, K. R. Kim (left) and the Secretary (Industries), Maharashtra Government, V. K. Jairath, exchanging the documents after signing an agreement in Mumbai for a greenfield facility at Ranjangaon, Pune, on Tuesday. The Maharashtra Chief Minister, Vilas Rao Deshmukh (centre), looks on.

MUMBAI: LG Electronics India Ltd. (LGEIL) on Tuesday signed a Memorandum of Understanding (MoU) with the Maharashtra Government to set up its second greenfield facility at Ranjangaon in Pune with an investment of Rs. 900 crore.

"We will invest Rs. 900 crore by 2008 to expand our manufacturing facilities in Pune out of which Rs. 400 crore will be towards DVD writers,'' company Managing Director Kwang-Ro Kim told reporters at the signing ceremony here.

Mr. Kim said the company had heavily invested in China in the last ten years and the additional investment in Maharashtra was a part of the company's plans to diversify its investments across various countries.

Asia's second largest plant

The DVD writer plant would be the Asia's second largest plant and 80 per cent of the DVD writers from the plant would be for exports.

The new plant would enable the company to touch an export turnover of $40 million by 2008, Mr. Kim said.

The company plans to manufacture colour televisions, air conditioners, refrigerators, washing machines, microwave ovens and colour monitors and would involve a manpower of 3,500. Under the MoU, the State Government would grant tax subsidies to the company. — PTI

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