Consumer electronics major LG Electronics India plans to assemble liquid crystal display televisions at its plants in Noida, Uttar Pradesh, or Ranjangaon near Pune, by mid-2006. The price of LGEIL's LCD TVs is expected to drop by 25 per cent, once the assembly in India starts.
With the commencement of assembly of LCD TVs in India, the company expects to increase its market share in this segment to 33 per cent in 2006 against 22 per cent achieved in 2005.
The market size of LCD TVs in 2005 in India was estimated at 18,000 units, while the volume in 2006 was projected to shoot up to 90,000 units, according to company sources.
LGEIL officials said the company was considering assembly of high-end plasma display panels in India, possibly from next calendar year.
PDP market in India in 2006 is projected to be 25,000 units, of which LGEIL was expected to have a market share of around 48 per cent. In 2005, the total market for PDPs in India was 12,000 units, in which LGEIL secured leadership with 23 per cent market share.
While company officials did not confirm the location at which the LCD TVs would be assembled, they indicated that it would be done at the Noida facility.
The Noida facility will predominantly used for meeting domestic demand, while the Ranjangaon plant will focus on exports and mobile handsets.
Market for LCD TVS is expected to shift to large size segment, with major demand coming from 26 inch and 32 inch range. An estimated 50 per cent of the market in 2005 comprised 20 and 26 inch LCD TVs.
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