LGEIL celebrates its eight anniversary

Company release, May 12, 2005

New Delhi

LG Electronics has in the short span of eight years achieved the position of a premium brand in the Indian market and is today the most preferred brand name in the segment. In line with its vision to become the number One Consumer Durable Company in India, it has grown from 125 crores to 6500 crores adding up a cumulative of 20100 crores in a total of eight years*. LG Electronics India is the fastest growing company in the consumer electronics, home appliances, Mobile phones and Computer peripherals industry today. LG Electronics is continually providing superior technology products & value for money to more than 50 lakh households in India.

LGEIL’s trend of beating industry norms started with the fastest ever-nationwide launch by LG in a period of 4 and 1/2 months with the commencement of operations in May 1997. LG set up a state-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500 Crores. This facility manufactured Colour Televisions, Washing Machines, Air-Conditioners and Microwave Ovens. During the year 2001, LG also commenced the home production for its eco-friendly Refrigerators and established its assembly line for its PC Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw the roll out of the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida.

In 2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra, which started operation in October last year. Covering over 50 acres, the facility manufactures Color Televisions, Air Conditioners, Refrigerators, Washing Machines Microwave Ovens Color Monitors and GSM phones. LGEIL also plans to produce 20 million mobile handset units by 2010 at this new state-of-the-art facility – This is India’s first mobile phone manufacturing unit.

LGEIL will become the export hub for LG worldwide catering to the Middle East and African markets. The company aims to touch an export turnover of USD 3 Billion by 2010, which will contribute to 30 per cent of LGEIL’s turnover.

The contribution of mobile phones and IT will be 65 percent while the rest 35 per cent will be from Consumer Electronics and Home Appliances. Speaking on the occasion, Mr K R Kim, President , South West Asia, LGE and Managing Director, LGEIL said, “Eight years ago , we started with the vision of becoming the No.1 Consumer Electronics and Home Appliances brand in India , the aim was to give the discerning Indian consumer the best products at an appropriate value and price. Also with a strong R&D and export focus, LG India intends to become a USD 10 billion company by 2010 of which 30 per cent will be from exports. We at LGEIL had the ability to diagnose current trends in the market, products, people, internal processes which has made LGEIL the fastest growing consumer durable company in the country. “

He further added, “I am very pleased to see the success that LGEIL has witnessed in such a short span of time. This has been possible due to the relentless efforts and dedication of each and every employee and the trade partners who has strived towards achieving this goal.”

LGEIL on this momentous occasion announced the opening of its first quality museum. Re iterating its commitment to its customers it is setting up a museum to display of defective samples to eliminate errors and to set up quality benchmark for maximum customer satisfaction . On this occassion Mr. Moon B Shin Deputy Managing Director said “ quality is of paramount importance to us and in our endeavour to give the best products to our discerning customers we at LGEIL have started an initiative to give quality products at best prices .”

About LG Electronics India Pvt. Ltd

LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January 1997 in India. One of the most formidable brands in the consumer durable and home appliances segment, LGEIL has an  impressive  portfolio  of  Colour  Televisions, Washing Machines, Air-Conditioners, Microwave Ovens, Refrigerators (Direct Cool and Frost  Free), PCs,  Vacuum  Cleaners,  Audio Systems,  DVDs, PDPs, optical storage devices,  Laptops  and  GSM mobile phones. In India for over eight years, LG has earned a premium brand positioning due to its superior quality, high product performance, revolutionary technological delivery and warm service. LG is the acknowledged trendsetter for the consumer durable industry in India with the fastest ever nationwide reach, latest global technology and product innovation.

LGEIL has achieved a turnover of Rs 6500 crore in 2004 and aims to be a USD 10 Billion company by 2010, with an investment of USD 250 million allocated over the next five years to the Indian market. LGEIL’s first manufacturing unit at Greater Noida is one of the most eco-friendly units among all LG manufacturing plants in the world. The new and second Greenfield facility of LG Electronics India located at Ranjangaon, Pune has the capacity to manufacture Color Televisions, Air Conditioners, Refrigerators, Washing Machines ,Microwave Ovens and Color Monitors and is operational since October last year . LGEIL also plans to produce 20 million mobile handset units by 2010 at this new state-of-the-art facility – This is India’s first mobile phone manufacturing unit.

For further information, contact:

Roma Nawani / Akanksha Gupta

Corporate Communications

LGEIL

Mobile: 9899302066 / 9811354338

or

Shailaja/Sherry

Hanmer & Partners, New Delhi

9810848779/9810355432