LG Electronics India Private Ltd., formally commissioned its new manufacturing unit in Gandhidham. The company expects a Rs 300 crore (approx. U.S. $68.6 million) turnover in the first year of operation.
LG Electronics has invested Rs 37 crore (approx. $8.5 million) in the new manufacturing unit.
"I am very happy to see India's first backward integrated project for manufacturing color television units in Gujarat," said K. R. Kim, president of South West Asia LG Electronics and managing director of LGEIL.
The plant, which will manufacture color televisions, started production January 2005.
"India has already attracted investments worth $250 million for the next 6 years and we have set a target turnover of Rs 9,000 crore (approx. $2.1 billion) for the current financial year," Mr. Kim said. "This only reflects our commitment to this market."
The new manufacturing facility, housed in an area of 6,200 sq m has the capacity to produce 3 lakh (300,000) color televisions per year. "It can be increased to 5 lakh (500,000) units per year," said Vishnu Todi, director of Genus Electronics, a partner of LG Electronics.
This is the first backward integrated project having in house manufacturing of printed circuit board, auto insertion, SMT line, plastic molding, and corrugation box.
LG also plans to setup a production facility on similar lines for the manufacturing of washing machines with Genus with a further investment of Rs 25 crore (approx. $5.7 million). This will also be a totally backward integration project having in-house sheet metal fabrication, automatic powder coating, and plastic molding with an installed capacity of 3 lakh (300,000) units per annum.
LG will also set up manufacturing facilities to produce microwave ovens and DVD players during the fourth quarter of the 2005.
The new facility will provide direct employment to 700 workers. (Business Standard)
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