KOLKATA: LG Electronics India (Pvt.) Ltd (LGEIL) will start manufacturing CDMA mobile handsets at its Pune facility in keeping with its plan to make India a manufacturing and export hub.

The company, which was the first one to set up a production unit in India for manufacturing GSM handsets, has planned to start manufacturing CDMA sets at the Pune facility from the second half of 2006. It was working on two models having global positioning systems likely to be launched later this year, product group head (GSM), H. S. Bhatia, told reporters here on Wednesday.

The company, however, would not make any major investments till 2010 following its investment of $15 million for setting up the Ranjangaon plant near Pune and R&D centre in Bangalore, he said.

Speaking at the launch of four new models of GSM mobile handsets, which takes the total number of models to 15, Mr. Bhatia said LGEIL aimed to sell 15 lakh sets in 2006 as compared to 4.5 lakh sets in 2005. "Our target is to increase our market share in the GSM category from 3.5 per cent in 2005 to about eight per cent in 2006," he said.

The company, aiming at a turnover of Rs. 9,000 crore this year as against Rs. 6,500 crore in 2005, was looking for making India both a manufacturing and export hub, he said.

LGEIL, having a total capacity of two crore sets, was now producing 50,000 phones a month at the Pune plant and planned to achieve full capacity utilisation by 2010.

On the export front, Mr. Bhatia said, "We have started exporting to markets such as Sri Lanka, Bangladesh, South Africa and the Middle-East. At present, exports stand at about 7,500 sets a month. This will be increased to ten million phones by 2010."

About the GSM segment, he said, "We have identified this category as a major driver of growth and expect it to contribute at least six per cent of our turnover this year, as compared to three per cent last year."

Despite its absence in the black and white entry-level models, LG expected to significantly increase its presence in the current year.

"There are 15 million black and white category handsets in the country, which are expected to be available for upgradation to colour and camera phones. We will target this segment," he said.

The company would launch 18 more models this year to consolidate its position further in the GSM handset market.

In the eastern region, the company hopes to strengthen its base and targets a sale of Rs. 150 crore from its GSM handsets this year. — PTI

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