LG Electronics to Invest U.S. $22 Million in India in 2004 Mar 29, 2004

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Korean electronics major LG Electronics said it plans to invest Rs 1 billion (approx. U.S. $22.3 million) in India in the current calendar year, and also come out with an initial public offering for which no time-frame has been set.

K R Kim, managing director of LG Electronic Indian Limited (LGEIL), its wholly owned subsidiary, said the investment would go toward factory expansion and research and development, among others.

Seven-year-old LGEIL has a manufacturing plant at Greater Noida near Delhi, India and it is currently setting up its second unit at Pune, India which Mr. Kim said would be operational by July 2004.

The Pune plant would have a capacity to manufacture 200,000 units each of TVs and refrigerators, he said.

Mr. Kim said LGEIL has plans to come out with an initial public offering (IPO) in the "near future" but added that no timeframe had been set.

Asked if the IPO is planned to be kicked off after LGEIL achieved a turnover of Rs 100 billion, Mr. Kim indicated that this was accurate.

For the calendar year 2003, LGEIL made a net profit of Rs 2.05 billion on 36 percent higher sales at Rs 45 billion. For 2004, the company is expecting a turnover of Rs 70 billion, he said. (PTI)

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