LG lines up Rs 450 cr capex plan for Pune operations

PUNE: LG Electronics India (LGEIL), the Indian arm of the South Korean consumer electronics company, is expanding its manufacturing plant at Ranjangaon near Pune. The company will invest a total of Rs 450 crore, of which Rs 200 crore will be in its factory and Rs 250 crore in its vendors plants around the factory, Govindaraj CS, LGEIL Ranjangaon factory head said. He added that the investments have begun and were fuelled by rising demand for consumer durables in Asia.

“The construction of a new building at the Ranjangaon plant has begun and should be completed by the year-end. This will add capacity to suffice for two years at least. We will add production of commercial air conditioners (5 tonnes plus), washing machines and expand the production of handsets and ACs,” Mr Govindaraj said.

The company currently makes seven products —refrigerators, CRT TVs, flat panel displays, air conditioners, LCD monitors, GSM handsets and DVD writers — at its Ranjangaon factory. Its factory in Greater Noida, is working at full capacity.

LGEIL has launched its Life’s Green Class programme in India in partnership with the University of Pune. The programme, developed by Korea’s Hanyang University and supported by LG Electronics, comprises a mobile science school that introduces science to students through drama, experiments, lectures and movies. After a successful run in Korea, the company has launched the programme in India.

Young Kee Kim, executive vice president of LG Electronics, the parent company, was in India to launch the programme. “India is an important market for us and a major talent pool, which is why we chose to bring this programme to India,” he said.

LGEIL has handed over an LCV fitted with the necessary equipment to the University of Pune which the University is expected to use in schools in Pune.