Posts Tagged ‘growth’
LG stands for Lucky Goldstar – the product of a merger of two South Korean commodities businesses – but over the decades with a steady stream of innovative consumer electronics and home appliances, consumers concurred with the conglomerate’s backronym that Life is Good.
LG Home Appliances (HA), the arm of the Korean giant, which makes refrigerators, washing machines and vacuum cleaners amongst other such appliances, clocked a turnover of Rs 6,500 crore in 2011, and expects to close the current year with a 30% increase, taking the top line in the region of Rs 8,500 crore.
Market Leader in Refrigerators and Washing Machines
LG is currently the market leader in both washing machines and refrigerators as per Gfk-Nielsen. For 2012-13, LG is targeting a turnover of Rs. 5000 crore in refrigerator segment. LG will launch flagship products across the home appliances category which will help in strengthening its product leadership.
LG has launched 33 new models in refrigerators. In televisions too, it is targeting the No 1 position in the Flat Panel TV segment with a 30% market share.
Samsung – a concern for LG
In India, Samsung has been flexing its muscle locally and capturing more of consumer mind share – riding on its successes in the mobile space – and with it a bit of market share, too. Samsung’s aggression in the mobile space has rubbed off on its appliances, although LG’s strong equity in home appliances holds it in good stead.
LG’s dependence on white goods is also a cause of concern for the brand, unlike Samsung which has managed to earn its spurs as an as an innovative and bestselling mobile phone brand. Recently Samsung overtook Nokia as the world’s highest selling mobile maker.
In the last few years, Samsung is catching up with LG especially in refrigerators. The Indian appliance space is synonymous with LG and Samsung. Some brands manage to represent the category and that is the case with these two.
The Textile and Apparel (T&A) industry in India is a major contributor to the GDP, exports, employment and foreign exchange earnings. It contributes about 14% to the industrial production, 4% to the GDP and 17% to the country’s export earnings. It is also the second largest provider of employment after agriculture, providing direct employment to over 35 million people.
The domestic size of the Indian T&A industry was about US$ 33 billion in 2008. It is projected to grow at an annual growth rate of around 10% to reach US$ 47 billion by 2012. Additionally, T&A exports were US$ 22 billion in 2008 and are estimated to reach US$ 36 billion by 2012 at an annual growth rate of 13%.
India’s current domestic consumption is expected to grow to US $200 billion by 2025. One of the major problem is the lack of supply to meet this demand. The current manufacturing capacities cannot meet this unprecedented growth in the demand and we may need huge foreign investments in this area. India needs huge investments of more than US $100 billion in the area of textile and apparel manufacturing. However, if this is not met, then probably the domestic demand will be met by the imports.
In this blog we shall discuss how GDP is calculated and why
GDP growth is a myth.
GDP = Production * Price per unit
Let us suppose a country A produces 5000 tractors per year and nothing else. Let us suppose it takes 25000 rupees to produce one tractor.
GDP = 5000 * 25000
Now, the next year the tractor price has increased to 26000 rupees
GDP for the next year = 5000 * 26000
The GDP is said to be grown even though in actuality the production is still the same. So, one shouldn’t interpret GDP growth or GDP contribution growth as an indicator of actual growth in a industry.