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LG in India
The LG Group had entered the Indian market through its wholly owned subsidiary LG Electronics India Pvt. Ltd (LGEIL). The company after being incorporated on 20th January 1997 was successfully established and by the end of December 1999, 23 branch offices were operational. Today LG’s arms in India include LG Electronics India (consumer electronics and white goods). LG Software India, LG Polymers, LG Construction, LG Hotline (picture tubes), LG Chemicals and a liaison office in Delhi.
In a span of 3 years, the company has launched 26 models of Colour Televisions ranging from 14 inches to 60 inches, 14 models of refrigerators ranging from 175 liters to 890 liters, seven models of washing machines ranging from 5.5 kg to 10 kg, nine models of air-conditioners, three models of Micro Wave Ovens and two models of V-CD’s which have been launched all over India.
In the past LG has had tie ups, first with the Bestavision group and then with C.K. Birla. But both the joint ventures proved short lived.” At that time, it looked like a bad omen. In the hindsight, it was a boon”. Sample this: LG has put up an application before the Foreign Investment Promotion Board (FIPB) to clear investment worth $296 million. Not many Indian businessmen could have matched this investment as LG’s partner. Indian partners in most of these joint ventures are reluctant to put money as the brand they help develop, at the end of the day, belongs to someone else.
Being on its own LG was also able to move at a fast pace. When it started off, within a space of five months it was able to complete its nationwide launch. Most other companies took at least two years to complete th ...