You recently attended the consumer electronics fair in Berlin. What sort of technologies did you see there that are still to happen in India?

The situation in India today has completely changed ascompared to what it was five years back. Any product that is launched in the global market comes to India within one or two months. This makes a huge difference to the aspirations of the Indian consumer. The consumer is now getting her due. In Berlin, many companies were talking about launching a flat-screen television. They were also talking about top box, and we already have plans to launch a similar product -- Internet Station -- by Diwali. There were video-phones and fax machines with email facility at the Berlin fair. These products have already been introduced in India. Internet has revolutionalised the market. I feel that the Indian market has finally come of age.

What are your predictions for the consumer electronics market in India?

The consumer electronics market will see double digit growth for the next three to four years. The growth in plastic money will create a boom in the consumer electronics market. The world of communications, information technology and consumer electronics aremerging. And this is why LG has decided to focus on products that address all the three areas.

In another four years, the consumer electronics market will double. It is worth around Rs 11,000 crore today. By 2004, it should across the Rs 20,000 crore market.Growth will be higher in the rural market. I expect 50 per cent of sales for consumer electronics to come from the rural market. Right now, it is around 30 per cent for the industry and around 35 for LGEIL.

Increased competition in the market over the last two years has lead to price erosion. Do you see that continuing?

Consumer electronics has always been an industry where there has been price erosion. Over-pricing will not happen in the future. Earlier, BPL, Onida, Videocon were the only players. Now there are 10 companies. In future, technology and value engineering will bring down the prices.

We are value marketeers and don't believe in cutting price in order to grab a larger market share.

Many of your digital products target aparticular segment. In India, several products have failed due to the peculiarities of the Indian market. Why do you think this will not happen to your digital products?

Any company which has to survive on niche market takes a risk. Therefore, we don't wish to have a limited portfolio. The digital products that we have launched recently are aspirational products. These products reinforce the top-end market. They will be adopted by the early birds and the trend setters and will satisfy the needs of this segment. These products will be fully imported for sometime to come. Once demand picks up, we will set up a manufacturing facility in the country.

Digital products require precision testing which is not available in the country so far. It is not difficult to start these facilities here. We would require an investment of around US $ 5 to 6 million to fully indigenise these products. There is no competition for our digital products. In fact, only Sony has introduced a flat TV, but it is notdigital.

What are the new products, after your digital range, that you plan to launch?

We plan to launch a 21-inch flat television that will bring flat screens to the common man before Diwali. We plan to introduce three or four new models of microwaves. This includes a robot grill. This grill moves up and down according to the height of the food in the oven. This leads to lesser consumption of power.

You are targeting a turnover of Rs 950 crore for the current calendar year. What's the secret behind such a high rate of growth?

We are growing rapidly primarily because we are introducing the latest products, at honest prices, supported by value-based promotions. We are also putting up our dealerships at the right place. Our company also has the passion to win. We plan to be the number one consumer electronics company by 2005.

How do you expect your digital products to perform?

Twenty five per cent of our sales should come from our digital products during the next calendaryear. LGEIL plans to launch more digital products, but it would be premature to comment on them at this stage.

What are your plans for the rural market? How do you plan to further your presence in this segment.

We plan to launch more easy products for this segment soon. We are diversifying in the rural market. Our strategy has always been to be present in the mass market. Besides we are also addressing the niche market with our digital range. In order to be the leader, one has to diversify into new products and be present in all the segments of the market.