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Competition is expected to intensify in the fast moving consumer goods (FMCG) segment — which is already under pressure due to poor margins and flagging sales — with the entry of the South Korean conglomerate LG.
Joining the battle for market share with leader Hindustan Lever and Procter & Gamble, LG and its FMCG subsidiary LG Household & Healthcare unveiled a range of premium products across seven consumer categories. LG has signed a licence agreement with India Household & Healthcare Ltd (IHHL) .
The company has also set up a distribution channel in most parts of the country. The FMCG products would be available in all metros, major towns and cities by July 2004, LG Household & Healthcare vice-president C H Kim said.
The FMCG products comprise toothpastes, shampoos, soaps, detergents and diapers and would be available in various sizes and packs, he said, adding, the company is also planning to launch cleaners, cosmetics and hairstyling products.
LG would complete its product rollout in major cities and towns by mid-June, while that in smaller towns is expected to be completed by July, he said.
Toothpastes would be rolled out under a sub-brand ‘Cliden’ in three variants, soaps in two categories along wit h shampoos, he said.
LG Household & Healthcare managing director Vijay R Singh said the company expects revenues of Rs 150 crore in the first fiscal of operations. The products, which are being localised, are to be imported from the company’s manufacturing base in Korea, he said.
LG Household & Healthcare is one of the 42 companies under the LG group.
(With PTI inputs)
