LG Electronics India Pvt. Ltd. A wholly owned subsidiary of LG Electronics, South Korea Established in January, 1997 State-of-the art manufacturing facility at Greater Noida, near Delhi, in 1998
LG Electronics India Ltd. Established In : Jan 1997 Managing Director : Mr. Moon B. Shin Corporate Office : Plot no51, Udyog Vihar, Surajpur Kasna Road, Greater Noida (UP) Corporate Website : http://www.lg.com Number of Employees: 3000+
Business Areas & Main ProductsHome Entertainment Plasma Display Panels, LCD TVs, LED LCD TVs, Colours TVs, Audios, Home Theatre System, DVD Recorder/Player, BluRay
Distribution network LG has adopted the regional distribution model in India. All the distributors work directly with the company. This has resulted in quicker rotation of stocks, and better penetration into the B,C, and D class markets. LG also follows the strategy of stock rotation, rather than dumping stocks on channel partners.
LGhas over 46 branch offices and another 110 area offices across the country. LG had set a target of developing 2,000Dealers in 2004, in addition to the existing 3,000 dealers all over India.
CFA’s The number of C/F agents as of 31st May,2004 is 28. They are spread across 20 states in India. The company dispatches the goods to C/F on consignment basis. At the same time, these C/F agents all work on contract basis. They get paid as per the amount they stock.
DISTRIBUTORS The company appoints distributor for selective cities where the markets are small but require more focus and attention. The company sends goods to the distributor on outright sale basis. The distributor is given a margin of max 17.5% The distributor has to maintain his own sales, delivery and accounts people for smooth working of his unit and is served by the nearest C/F for all his requirements.
Delivery Schedule Takes 1 day for CFA’s to service reorder within their zone. Distributor too caters to the demand in his area within 48hours from the time of receiving the order. No inventory management system in place with the MBO’s(Multi brand outlet) LG Shoppe’ and franchisee showrooms do have a system in place to consolidate their inventory and sales with the company main office