Mobile Communications - LG Investing in Indian Mobile Handset Plant
October 07, 2004
In response to the region's growing demand for mobile handsets, LG Electronics plans to construct a new mobile handset plant in Pune, India. The plant is slated to start producing GSM (Global System for Mobile Communications) and CDMA (Code Division Multiple Access) phones by the end of 2005.
Initial annual capacity of the new production line will be two million units, aiming for 20 million units by 2010, with 50% of output allocated for export. Of the US$150 million in R&D capital that LG plans to invest in India through 2007, around US$43 million will go to the mobile handset facility. A total of US$60 million investment will be injected by 2010.
The move is part of LG's effort to hoist revenues from its Indian operations to US$10 million by 2010. LG plans on shaping India into its biggest mobile phone production base after China, and LG India is slated to become its global export hub for Africa, Asia, and the Middle East.