LG expects PC biz to clock $250m revenue in 2005

LG's overall revenues in India is expected to be $2.04 billion in India of
which 12 percent would come from PC business. After having cornered a
substantial share of the consumer electronics market, LG Electronics India Ltd (LGEIL)
now expects its personal computer business to replicate the success and clock
revenue of $250 million in 2005.

"LG's overall revenues in India are expected to be $2.04 billion in
India of which 12% would come from personal computer business", said LGEIL
IT Products Sales and Marketing GM, R Manikandan.

He said the share of PC business is increasing every year and added, "In
2003, the share was 10% in 2004 and will be 12% in 2005."

In 2003, LG's revenue from IT products was $99 million. In 2004, it
increased to $157 million and this year it is expected to grow to $250 million.
According to the press release, while LG is expecting its PC shipments to grow
37% in unit term, in revenue terms it is expecting a growth of 60%.

"To ensure that revenue growth outpaces unit growth in a market where
per unit realizations fall every time, we will concentrate on high-end
products," Manikandan said. For further growth, the company is planning
another push in the smaller towns to increase geographical coverage. "For
taking the market away from the competition, we will also introduce products
that cater to preferences of local population", he added.

Apart from depending on conventional IT reseller channel for reaching
customers, LG will also rely on the retail network it has built for its consumer
electronics business. "We are also opening a chain of exclusive stores for
our IT products. Currently there are 32 LG Cyber Shoppes and we plan to increase
it to 100 by this year end," Manikandan said.

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