Business Standard: In a bid to cut losses in the highly competitive flat panel display televisions segment, LG plans to set up an assembly unit for plasma and LCD televisions in India.
Consumer electronics companies across the board are bleeding as competition is driving constant undercutting of prices, company executives said. “At the moment, supply is larger than demand. Hence, players in the flat panel display market are losing money. We will set up an assembly unit for plasma and LCD televisions at our plant with an investment of $100 million spread over 5 years,” said Moon B Shin, deputy managing director, LG Electronics, India.
At present, completely built television imports attract 20 per cent duty and executives admitted that LG was losing about 5-6 per cent on every set sold in this category.
Replying to queries whether LG would eventually begin complete production of flat panel display televisions in India, Shin said the market size should touch at least 1 million units to justify the investment for a production unit. He added that in the likelihood of this happening over the next 3-4 years, the company might consider a production facility in its proposed third plant here.