LG Household and Healthcare, a subsidiary of Korean chaebol LG Group, has forayed into the Indian fast-moving consumer goods segment, and is expected to launch 240 products soon.
Speaking to Business Standard in Bangalore, LG India House Hold & Health Care Ltd Managing Director Vijay R Singh said: "The Indian market is diverse, has a rural skew, uses low-end packaging and is price sensitive. Our research has revealed that superior products in the country are priced much higher than the common man's expectations. We aim at bridging this gap by offering premium products at reasonable prices."
LG (India) House Hold will have the packaging rights in the country, and is initially introducing 30 products under the oral healthcare, hair, skin, body and kids care segments.
"We are targeting a turnover of Rs 100 crore (Rs 1 billion) by the second year, and a significant market share of each of the segments we are entering. To achieve this, we are setting up a wide distribution network covering all towns with a population of over 100,000. This will include reaching out to over 50,000 outlets in 18 months, including departmental stores, multi-brand outlets, chemists and some kirana stores," Singh added.
Talking about the pricing strategy, he said: "We plan to compete with well-entrenched domestically manufactured brands. In India, we will aim at reaching the burgeoning middle class, and some changes in packaging will be effected to meet local requirements."
