Date:24/08/2005 URL: http://www.thehindubusinessline.com/2005/08/24/stories/2005082403100400.htm

Back LGEIL keen to increase handset market share

Our Bureau

A model poses with the new LG U8380, a compact 3G handset, in Kolkata on Tuesday. - A. Roy Chowdhury

Kolkata , Aug. 23

LG Electronics India Pvt Ltd (LGEIL) hopes to generate a turnover of Rs 5,000 crore from sales of GSM mobile handsets in the domestic market by 2010. In that year, the company hopes to rake in Rs 4,000 crore from export of GSM mobile handsets, according to Mr H.S. Bhatia, Product Group Head - National GSM Mobile Phones of LGEIL.

Addressing a news conference here on Tuesday to unveil a range of 3G handsets in the eastern region, Mr Bhatia said the company currently exports handsets to neighbouring countries such as Sri Lanka, Bangladesh and Nepal. In the days ahead, exports will be to new geographies such as Africa and West Asia.

According to Mr Bhatia, LGEIL is investing $35 million on a handsets manufacturing facility in PuneAt present, handsets are being assembled there; India-made models would roll out of the factory by 2006.

By 2010, LGEIL is likely to have a share of between 11 per cent and 12 per cent of its addressable market.

At present, LG has a 4-per cent share of the domestic market for mobile handsets. However, the company does not have any offerings for the black and white handsets segment, which comprises 52 per cent of the Indian market for mobile handsets.

Mr Bhatia said LGEIL would spend Rs 30 crore in 2005 on advertising and branding initiatives for its handsets.

While cricketer Yuvraj Singh was the company's brand ambassador for handsets in 2004, for the current year, LGEIL had zeroed in on upcoming actor Zayed Khan.

In the eastern market, the mobile penetration is far lower than in other parts of the country.

"In Kolkata, the GSM handsets penetration level is barely 11 per cent, compared with around 24 per cent in cities such as Mumbai, Delhi and Chennai.

"In States such as Orissa, Bihar and Assam, it is around 2 per cent. As such, there is tremendous scope for sales of handsets in the region," Mr Bhatia said.