It was a tough year for LG India as the company's revenue took a beating by around 17 percent. With CDMA additions not in sync with GSM, the company was badly affected on the revenue front. Total sales for LG India in FY 2004–05 stood at Rs 2,314 crore, in comparison to the towering revenue of Rs 2,797 crore in FY 2003–04. 

Majority of LG's revenue still comes from Reliance Infocomm but in FY 2004–05, the company made inroads into the Tata account too.

Pretty strong in CDMA, LG India is way above Nokia with market share of around 59 percent. But things took a beating in the overall handset category. With CDMA market not doing well in terms of number of additions, LG slipped to second position in the overall category with a market share of 11.8 percent, slightly higher than its next competitor Samsung.

President (South West Asia): KR Kim Area of Operation: CDMA and GSM handsets  Address: LG Electronics India Plot No 51, Udyog Vihar, Surajpur – Kasna Road Greater Noida – 201306, UP Tel: +95 120 2560 900/940 Fax: +95 120 2560 921/953 Website: www.lgservice.com  V&D estimates CyberMedia Research Highlights • The company started its manufacturing facility at Ranjangaon near Pune in 2005 • LG's majority revenue still comes from Reliance Infocomm and CDMA • Pretty strong on the FWT front, the company has a market share of around 79 percent

The company is inching forward in the GSM space and netted a revenue of Rs 200 crore in the past financial year. Focused in the color and camera phones category, the company is focusing its product right from low end to high end and is pretty aggressive. In terms of launches, the company launched almost one to two models every month in the last six months. Its best-selling model in GSM category was G1600.

On the FWT front, the company has a market share of around 79 percent and has done pretty well both with the incumbent as well as the private operators.

LG has a unique distribution model, different from what its competitors are practising. The company practices direct distribution model as it has a direct presence through 300 authorized service centers. Plans are also to increase them to 450 by June 2005. The company is very active on customer care and has introduced 'One Hour Service,' which is helpful in resolving customer complaints in an hour's time.

In order to cash in on the 3G bandwagon, the company has launched four models in the country and is eagerly waiting for carriers to start 3G operations.

The company is eyeing a total revenue of $10 billion in 2010, which will constitute around 10 percent of its total worldwide turnover. To this pie, mobile phones will contribute the maximum with $3.5 billion, around 35 percent of the overall revenue.

The company started its manufacturing facility at Ranjangaon near Pune in 2005 and started pilot production for two models of GSM phones and plans are being firmed up to close the year with total sales of two million handsets. On the handsets front, the company is planning to manufacture 20 million handsets by 2010 of which 50 percent will go towards exports.

A strong believer in customization, LG is putting a lot of stress on R&D and is looking at complete software and hardware integrations from its India center.

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