 NEW DELHI: Days after Japanese bike major Yamaha said it will make its cheapest motorcycle in the world in India, it is now the turn of Korean electronics giant LG to announce a similar plan. The world's second-biggest maker of TVs has said India will be a manufacturing base for its globally-cheapest LED TVs and these would be priced under Rs 10,000. Soon Kwon, MD of LG Electronics India, said the company sees "high potential" for low-cost LEDs in emerging markets across the world, and India is one of the big-focus countries for the product. The product is currently being developed by R&D centres in Korea as well as India. India, traditionally a CRT ( Cathode Ra y Tube) or curved TV market, has fast been moving towards slimmer and more advanced LCD and LED TVs over the last few years. However, CRTs still account for a big portion of overall TV sales and this is where LG seems to have set its eyes on. CRTs, which currently account for half of the TVs sold in India, saw volumes decline by 40% last year as flat panels moved up dramatically. "Someone has to fill the gap created by the decline of CRTs. There is a huge latent demand for lower-priced LEDs," Kwon said, adding that apart from India, other important markets for the low-priced LEDs include Africa and Indonesia. However, he did not elaborate on when the low-priced LEDs would debut in the market or the investments the company is making for their development.A huge domestic market and growing know-how to develop such products is prompting companies to bet on India for developing lowcost products. Adi Godrej, past president of CII and c hairman of Godrej group, said the rewards can be big if the products are successful. "These are bottom-of-the-pyramid products and can provide a huge market, if successful ," Godrej said, adding that his company also launched a sub-Rs 3,000 fridge to cater to rural areas. LG has a 300-strong R&D set-up at Noida in Uttar Pradesh , and apart from giving local insights, this also helps in the company's global R&D for new technologies and products. Kwon said the lowpriced LEDs will have a strong potential not only in urban India but also in smaller towns and rural areas. "LG is very strong in smaller markets and towns and of the Rs 16,000-crore turnover last year, we got nearly 15-18 % from the rural markets." The cheapest LED from LG's stable is priced at Rs 12,500, while market leader Samsung sells it for Rs 13,500. LG has been eyeing a leadership role in the Indian TV market and launched as many as 45 new flat-panel TVs (at Tech Show) as it eyes a 30% market share. The company is investing Rs 100 crore for marketing of flat panels this year.  via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGuf2ixG--Fz9oH6LBjkCd-blikSA&url=http://timesofindia.indiatimes.com/business/india-business/LG-eyes-India-as-hub-for-sub--Rs-10k-LEDs/articleshow/19704641.cms | |||
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