South Korea's LG Electronics has sought customs duty exemption on imports of open cell television panels, which will also help domestic manufacturers to be more competitive, said a company official. At present, imported open cell television panels attract five per cent customs duty.
The South Korean giant also said it will continue to manufacture TV sets in India, and invest to enhance its capacity. "We are asking the same thing to be duty free (import of TV panel in open-cell state). Currently, we are paying 5 per cent (custom) duty on import. If 5 per cent duty disappears, it would help more make-in-India," LG Electronics India Director-Home Entertainment Younchul Park told PTI.
He further added: "Duty free would help us align with make-in-India". Park said that waiving of five per cent custom duty on import of TV panel in open-cell state would also encourage domestic manufacturers.
Companies import television panels in open-cell state, which require further assembling with value addition before being shipped to market for sale. On being asked as whether LG like other manufacturer, is considering to shift or source TV from other markets, considering the high duty in India, Park said that LG unlike other brands is not importing TVs from Vietnam, Malaysia and Thailand at zero duty through the FTA route.
"We are very clear with our policy of make-in-India. Here, year-by-year, we are investing more. we are not changing. "LG is the single company, which is manufacturing fully in India unlike others. We are the only company, which is producing OLEDs in India, which is quality wise number one," he added.
LG manufactures TV set at its Pune plant, which has a manufacturing capacity of approximately 3 million units per annum. The South Korean TV maker has around 25 per cent of the TV market and expects to increase it to up to 27 per cent this year.
The India TV market is expected to be around 14 millions units and is dominated by top three brands — Samsung, LG and Sony. These makers are now witnessing intense competition from the new makers who are competing in the entry level segment and mid affordable range.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)