Under pressure from rising input costs, LGEIL will hike prices of its products post Diwali to maintain margins. The company is looking at 50-per cent growth in sales during the current festive season.
Moon B. Shin, Managing Director, LG Electronics India Pvt. Ltd, told reporters, “Although we have manufacturing facilities in the country, we still import a lot of materials and components from other countries. We are facing acute problems due to rupee depreciation. Post festive season, we will study our sales and other cost factors. There are chances that we might increase prices of some of our products by three to five per cent, but our effort is to keep it as minimum as possible as we want a win-win situation for both customers and ourselves.”
The company said the imports coming from countries such as Korea have been impacted by rupee losing its value by 15 per cent against the dollar. LG will primarily hike prices of its products for which it needs to import the key components that are not manufactured locally. Prices of some its imported products such as high-end LCD TVs, refrigerators and washing machines will go up due to devaluation of the rupee.
For monitors, it will hike the prices by 3–4 per cent and for optical drives the prices will go up by 7 per cent. LGEIL achieved a turnover of Rs.9,500 crore in 2007 and is targeting a revenue of Rs.11,000 crore for this fiscal. It plans to invest US$50 million to enhance its manpower and R&D in India by 2009. The company has also launched its energy-efficient monitors in India. It launched the world’s best feature filled energy efficient monitor (W52TE). LG also launched the multi-link monitors (L206WU) and the designer series monitors (W84 series).
Commenting on the new launches, R. Manikandan, Business Group Head, DDS, LG Electronics India Pvt. Ltd., said, “The energy savings from using our W52TE monitors can really add up over time, especially as people use their computers more and more. At LG, we care about the impact our products have on the environment and their financial impact on our customers, as energy prices rise. Also, keeping in view the demand for aesthetics and looks for the product, our designer series – W84 series is a one-of-its-kind LCD monitor when it comes to the perfect combination of looks and technology.”
The new W52TE series monitor reduces energy consumption by up to 50 per cent compared to other monitors of the same size. The W52TE model also includes a Fun Key that provides one-touch access to many of its special functions. The FLATRON L206WU is a widescreen LCD monitor that can be connected to a computer using a USB cable and is aimed at people who want to add a second screen.
These monitors will be available in the market starting from November 2008. The FLATRON W2252TE with screen size of 22” will be available in the Indian market at Rs.14,000/- and W1952TE with 19” screen will be at Rs.11,000/-. LG FLATRON L206WU Windows Vista certified monitor will be available in 20-inch widescreen size, priced at Rs.18,000/-. The W2284 model with screen size of 22” will be available in the Indian market for Rs.14,000/-.
