Consumer electronics major LG Electronics India on Wednesday said it would invest Rs.200 crore over the next three years in the IT business as it forays into the small and medium businesses (SMB) segment. The company is also targeting revenues of Rs.200 crore by December next year from the SMB vertical.
“We estimate the market for SMB to be about $400 million, of which we should be able to capture about 10 per cent by December next year,” LG Electronics India Managing Director Moon. B. Shin told reporters here. The investment would be made over the next three years for product development and R&D, marketing and opening experience zones for the SMB products.
The enterprise segment would contribute about Rs.1,000 crore in revenues in 2010, of which Rs.200 crore would come from the SMB vertical, he said.
“We are looking at establishing our presence in the top 10 cities in 2010,” LG Electronics India Business Group Marketing Head (Business Solutions) R. Manikandan said. LG launched its range of computing products, security surveillance equipment, projectors, digital signage solutions and other appliances like refrigerators, air conditioners, air purifiers and microwave ovens, customised for SMB units.
The products would be manufactured at LG’s facilities in Noida and Pune, while some would be exported from Korea, Mr. Manikandan said.
“We have been successful in our consumer business but the enterprise segment is also promising,” Mr. Shin said.