Local and efficient manufacturing to reduce cost
To overcome high import duties, LG manufactures
PC monitors and refrigerators in India at its manufacturing facility at Noida, Delhi. LGEIL had already commissioned contract manufacturing at
Mohali, Kolkata and Bhopal for CTVs. This has helped
LGEI to reduce costs.
LGEIL is implementing a “digital manufacturing system”
(DMS) as a cost-cutting innovation. This system is a follow-up to the Six Sigma exercise LGEIL had initiated earlier. Product
In 1997- entering into India market.Selling imported products at high prices.
To overcome high import duties, LG manufactures PCmonitors and refrigerators in India at its manufacturingfacility at Noida
The first manufacturing plant was established in 1998 inNoida
In 1998- launching first low priced TV for rural consumers.
When LG started its operations in 1997, it sold products that were imported. Hence, its products were priced high and were equivalent to other foreign (Japanese) products. Industry analysts felt that this strategy was adopted to make local consumers feel that LG products were by no means inferior to Japanese products in performance or in quality. However, in 1998, LG launched 'Sampoorna,' its first low priced TV for rural consumers, and followed it with 'Cineplus.'