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LG Electronics plans to invest Rs 1,000 crore to boost marketing, R&D

The Economic Times:  March, 2015

Kolkata/New Delhi: LG Electronics, the country's largest white goods maker, plans to invest a record Rs 1,000 crore this year as it pushes for around 25% growth in revenues, buoyed by its first sales growth in four years.

LG plans to make its highest ever investment in a single year in the country to boost marketing, R&D and product localisation, after notching up over 15% growth in sales at Rs 18,500 crore in 2014 after three years of almost flat sales, top officials said.

The firm now aspires to touch Rs 23,000- Rs 24,000 crore in sales, betting on higher consumer discretionary spending, its focus on premium products, and faster growth from its television and smartphone businesses. "We have a well-defined product strategy to support this growth plan and sustain our market leadership across categories," said Soon Kwon, managing director at LG Electronics India.

"We have been introducing premium products designed for the Indian market which has contributed to this growth making India amongst our top five markets globally," he said. The bullishness of the Korean major comes from the rebound in sales of household appliances like refrigerators and washing machines that rose 15% last year.