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INDIAN REFRIGERATOR INDUSTRY – A FOCUS
Refrigerators have been manufactured in India since 1950s. Till the 1980s players like Godrej, Kelvinator, Allwyn and Voltas controlled almost 90% of the market. Earlier, the white goods sector was categorized as a luxury goods industry and was subject to oppressive taxation and licensing. The situation changed after the liberalization of the Indian economy in the early 1990s. The government removed all restrictions, and now there is no restriction on foreign investment, and the licenses are no longer required. Post-liberalization, a number of foreign companies entered the market and many domestic players also diversified into refrigerators.
In India, refrigerators have the highest aspirational values of all the consumer durables, with the exception of televisions. This accounts for the high growth of the refrigerator market. The refrigerator market has been growing at a rate of about 15% per year, while the consumer durables industry as a whole has grown at almost 8%.
The size of the refrigerator market is estimated to be 3.5 to 4 million units approximately, valued at Rs. 50 billion. The domestic penetration rate of refrigerators is about 9%. The penetration of refrigerators is considerably higher in urban areas, which account for 75% of the demand, with rural areas constituting the other 25%.
The major players in the Indian Refrigerator Industry-
BPLElectrolux KelvinatorWhirlpool IndiaL.G. ElectronicsSamsung IndiaGodrej- GE
The listed companies provide the two basic types of refrigerators in India, viz. Direct Cool and Frost-Free. Till the 1990s, only direct cool refrigerators were used in India. Videocon was the first to introduce the frost-free type. In 2000, the direct cool segment constituted almost 82% of the market, while frost-free refrigerators took up the rest. However, of late, the frost-free market has been picking up at a faster rate. In 2002, the frost-free segment grew at the rate of 7%, while the direct cool segment grew at 3%.
The most popular model is 165 lts one; however, recently, the trend has been shifting to ones with a higher capacity. The 200 lts and above market is growing at a rate of 18%. Only about 5% of the demand is for the premium range.
The replacement market of refrigerators is fairly large. The estimated life of a refrigerator is about 15 years. But with newer and more sophisticated models being rolled out with greater frequency by companies, they are being replaced at a faster rate. Replacement is also stimulated by the exchange offers and discount schemes offered by most dealers. The replacement market is growing at a rate of 25 to 30%, as
compared to a relatively low 5% in the early 1990s. There are about 6 million refrigerators currently in use, which have to be replaced in the next few years. This shows the market potential of the replacement market.
The total installed capacity in the industry is about 7 million units, which is higher than the market size. This acts as a brake on expansion plans, and the high competition resulting from a restricted market has led to a fall in profit margins. The players now have to look for, and try to tap, hither to unexplored markets. Rural markets offer reasonably good potential as the penetration of durables is considerably lower in rural areas but there are problems like lack of electricity and infrastructure, which hamper the growth of effective demand in these areas.
CHARACTERISTICS OF THE INDUSTRY
Low penetration: The penetration level of white goods in the Indian market is very low as compared that in other countries. In India, the penetration of refrigerators in 1996 was 8.6% as compared to the higher levels in countries like Japan (98%), Brazil (67%), etc. Low penetration rates imply greater market potential. In India however, low penetration is due to structural barriers like lack of purchasing power and bad infrastructure. The market is highly segmented and price-sensitive, which makes demand uncertain. Also, the urban markets are saturated while the rural markets are not developed. Therefore, there are structural limits to the level of penetration of refrigerators.
Overcapacity: In the initial stages of liberalization, when a large number of MNCs entered the Indian market, they expected the economy to grow at a very fast rate. This led to the installation of large manufacturing capacities. It is estimated that the total installed capacity in the industry is about 7 million units. Because of this, companies like BPL, Videocon, National, LG and Samsung, which earlier planned to increase capacity, have put a hold on these plans and are resorting to contract manufacturing instead.
High competition: The market for refrigerators is rather limited as the demand is saturated in urban areas and underdeveloped in rural areas. There are too many players for the limited market. Because of this, there is a high degree of competition and the margins are very low.
Replacement market: Due to high competition and low sales, a lot of schemes are offered to customers to increase the demand. Because Indian customers do not like to get rid off their durables, a number of companies offer attractive exchange schemes to boost sales. The replacement market, although it increases sales in a particular segment, does not really increase the market size. Increased replacement sales result in slower growth of straight purchases.
Production bottlenecks: Manufacturers find it difficult to access raw material and also have transportation problems. This makes production and distribution difficult. There are
also great delays in the installation of capital facilities; for this reason, many companies are now resorting to contract manufacturing.
TYPES AND FEATURES OF REFRIGERATORS IN INDIA
Refrigerators are, by far, the most popular products in the white goods segment. They have a wider market than washing machines, dishwashers and similar products, with the possible exception of televisions. There is a wide variety of refrigerators to choose from, to meet every need and budget. Some of the types and features are listed below:
Size
Refrigerators are available in a number of sizes. The choice of size depends on the number of people in the family. A model of 150-200 lts is sufficient for a family of two. Add 20 lts for every additional member and the ideal size of the refrigerator for a family may be determined. The food and shopping habits of the family also determine the storage capacity they would require in the refrigerator.
The most common ranges of size are:
<165 lts165-200 lts200-350 lts>350 lts
However, there are refrigerators, which come in sizes smaller and larger than the ones listed above too. For instance, a person living alone may go in for a size below 100 lts. Restaurants and other institutional consumers may choose larger ones.
Price
Refrigerators are available in prices ranging from Rs 6,000 to Rs 1,44,000. The price depends on the size and features of the product.
The regular price ranges are:
< Rs. 8,500 Rs. 8.500-10,000 Rs. 10,000-20,000 Rs. 20,000-40,000> Rs. 40,000
Doors and Compartments
The number of doors in the refrigerator is an important product feature for refrigerators. There are refrigerators with one door, two doors, or three. More sophisticated models
with 5 or more doors are also being designed.
Single door: This is the simplest model of a refrigerator, with a built-in freezer compartment.
Double door: In a double-door arrangement, the doors may be placed side by side, or with a top freezer compartment, or a bottom freezer compartment. The top freezer compartment type is the most popular and usually costs less to buy and operate. Bottom freezer compartment models are cheap to operate but more expensive to buy.
Triple door: This type has a freezer compartment, a refrigerator and a third compartment, the use of which varies from model to model.
Defrosting Facility
Defrosting removes the built-up ice from the freezer and the refrigerator. The type of defrosting system is an important aspect of product differentiation in refrigerators. The different types of defrosting systems available are:
Frost-free: Refrigerators which offer this option have an inbuilt timer, heater and thermostat, which switch on the defrost cycle every 2 hours. No manual intervention is required to keep the fridge ice-free.
Automatic defrosting: In the automatic defrosting model, the fresh food compartment is defrosted automatically but the freezer has to be defrosted manually.
Cyclical defrosting: With cyclical defrosting, the defrosting function is activated every 8 hours by a timer. The defrosting cycle lasts for 20 minutes and the water evaporates automatically after the process.
Semi automatic: In semi automatic models, the defrosting is done by the push of a button. Once the process is activated the defrosting gets done automatically.
Other Features
There are a number of other miscellaneous features offered by different companies. The following are a few of them:
Adjustable shelves: This allows the user to modify the interior of the fridge as per his convenience. This feature is especially useful in the Indian market, as consumers tend to use a wide variety of utensils of different sizes and shapes.
Door lock facility: Allows the monitoring of unauthorized access to the refrigerator.
Separator for fruits and vegetables: Provides different compartments for different types of foods. The user can store different types of groceries and ensure the softer ones
don't get crushed by the others.
Moisture or humidity control: This helps maintain the freshness of fruits and vegetables. The feature is essential to people who tend to shop many days in advance.
Reversible door swing to adjust the side on which the door opens: Allows the user to change or adjust the swing of the door of the refrigerator. This helps when the user is undecided about the placement of the fridge or when there is a space constraint.
Freezer lamps: Illuminates the freezer and assists in the easy location of items.
Quick freezing component: This feature is available either as a separate compartment within the freezer or as a knob, which allows the temperature to be adjusted. This is especially beneficial when foods need to be frozen on short notice or when a lot of ice is required at parties.
Deodorizers: They remove the odor and bacteria from foods stored in the fridge to keep the inside free of smells. Useful for people who store non-vegetarian food or garlic for days.
Adjustable egg-racks: Non-egg eaters can simply dispense with them and increase the storage space in the refrigerator.
Door shelves: The number of shelves behind the door of the refrigerator also allows easy storage and convenient retrieval of items.
Clean back: Most companies are now introducing refrigerators with clean (flat) backs. In this type of refrigerators, the compressor coils are at the bottom of the refrigerator instead of at the back as in older models. This adds aesthetic value in addition to providing a safety cover for the compressor. The number and combination of these features differs from brand to brand and between models of the same bran
REFRIGERATOR Sales* Trend: 1995-2001
YEAR SALES (In Million Units)1995 1.701996 2.251997 2.151998 2.301999 2.702000 3.002001 3.30
*Sales for following refrigerator companies: Godrej, Electrolux, Videocon, L.G., Samsung, BPL, Daewoo, Whirlpool and Others.
INDIAN MARKET FOR REFRIGERATORS (2000-01): 3.3 Million Units
Whirlpool26%
BPL5%
Daewoo2%
L.G.6%
Samsung5%
Videocon11%
Electrolux20%
Godrej24%
Others1%
Godrej
Electrolux
Videocon
L.G.
Samsung
BPL
Daewoo
Whirlpool
Others
(Source: A&M)
Company-wise Trends in Production: 1995-96 to 2000-01
Company Units 95-96 96-97 97-98 98-99 99-00 00-01Godrej Appliances ‘000
nos841.8 692.2 825.7 806.0 708.2 480.9
LG Electronics India
N.A. N.A. N.A. N.A. N.A. N.A. N.A.
Whirlpool India ‘000 nos
532.0 619.1 527.2 716.4 879.4 858.2
Electrolux Kelvinator
‘000 nos
25.7 86.8 218.2 363.1 363.1 281.8
Total Production ‘000 nos
1399.5 1398.1 1571.1 1885.5 1950.7 1620.9
(Source: CMIE)
Company-wise Trends in Sales: 1995-96 to 2001-02 (Rs. Crore)
Company 95-96 96-97 97-98 98-99 99-00 00-01 01-02Godrej Appliances
634.95 610.51 673.79 672.10 594.77 365.65 386.63
LG Electronics India
N.A. N.A. N.A. 72.70 168.78 342.79 N.A.
Whirlpool India
302.34 480.87 364.64 605.44 714.86 773.49 775.81
Electrolux Kelvinator
14 67.12 204.25 291.04 291.04 322.50 407.09
Total Sales 1010.69 1158.5 1242.68 1641.28 1769.45 1804.43 1569.53
Trends in Market Share: 1996-97 to 2001-02 (Per Cent)
Company 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02Godrej Appliances
36.4 36.23 27.17 23.51 15.07 14.71
LG Electronics India
N.A. N.A. N.A. N.A. 8.2 N.A.
Whirlpool India
28.67 19.61 24.48 28.26 31.87 29.51
Electrolux Kelvinator
4 10.98 11.77 11.51 13.29 15.48
Total for all companies
65.07 66.22 63.42 63.28 60.23 59.7
(Source: CMIE)
Market Share of Frost-Free Refrigerators (ORG MARG Retail Audit Data - September 2003)
PercentCompany Market ShareGodrej 19.3L.G. 34.5Whirlpool 19.1
Electrolux 15.0Others 27.1
(Source: Pitch Magazine; December 2003)
RESEARCH METHODOLOGY
MAIN PURPOSE:
To study the impact of 4 P’s of the Marketing Mix i.e. Product, Promotion, Price and the Place in developing relationship with the Dealers and Customers in Ahmedabad city considering the product as Refrigerators.
MAJOR REFRIGERATOR PLAYERS CONSIDERED:
Godrej
LG Electronics
Whirlpool India
Electrolux Kelvinator
RESEARCH OBJECTIVES
Customer- Oriented:
1. To study the priority level of the 4 P’s during the purchase of refrigerator.
2. To study the influence level of the selected aspects of the 4 P’s on their purchase.
3. To study whether the selected elements of the 4 P’s helps in relationship development with the company.
4. To study their future preference to buy a particular brand of product based on the relationship developed.
Dealer-Oriented:
1. To study the reasons for being chosen by a particular company or choosing a particular company for dealership.
2. To study the main reason/s for the sale of a particular brand and model of refrigerator.
3. To study the level of working experience and relationship, as a dealer, with the chosen companies on the selected criteria.
TIME SCOPE FOR THE PROJECT COMPLETION: Approximately two and half months
(Note: For the project we have considered all those customers who have purchased their refrigerators within last one year only.)
METHODS OF DATA COLLECTION:
Research Design: Descriptive Design
Sample Design:
Type of the Universe Finite Universe
Sampling Type Random Sampling (Both dealers & customers)
Sampling Unit (Geographical) Ahmedabad city
Sample Size
Customers Approximately 100 customers
Dealers Approximately 25 dealers
DATA COLLECTION SOURCES:
Primary Methods (Survey)
Customers Structured Questionnaire (close-ended)
Dealers Questionnaire (open-ended & close-ended)Interview Method (Unstructured)
Secondary Methods
Business Magazines
Newspapers
Internet
Reference Books
Libraries
AREAS TO BE COVERED:
Sabarmati Vasna
Shahibaug Vastrapur
Paldi Satellite
Navrangpura Memnagar/Gurukul
LIMITATIONS :
COMPANY PROFILE
GODREJ
HISTORY Paste from history folder – 1 page
ABOUT-- GODREJ & BOYCE MFTG. CO. LTD.
Everyday, every Indian encounters the ‘Godrej’ name sometime somewhere. A person may begin the day bathing with Godrej soap, shaving with Godrej shaving cream, and storing clothes in Godrej Store-well cupboard, cooking food in Godrej cooking oil and preserving it in Godrej refrigerator. Money and valuables are kept in a Godrej safe, work is done on a Godrej computer or typewriter while sitting on a Godrej chair and drinking a Godrej fruit drink.
Yet few know about the indomitable spirit of the man responsible for making Godrej a household name, Ardeshir Godrej a pioneer who produced quality products and captured markets.
Innovation has been the key. It is this spirit that has built Godrej and carried it for a hundred years. Taking it into diverse industries ranging from cupboards to soaps, hair dyes to edible oils, and packaged foods to refrigerators.
In recent years several partnerships have been formed with international giants like General Electric, Pillsbury, Fiskars and Sara Lee, bringing Godrej membership in the Global village that will carry it forward into the 21st century.
Godrej has always been a crusader for a better world with programs that benefit endangered forests, wild life and mangroves. Every year the Pirojsha Godrej Foundation dedicates funds towards promoting education, housing, social upliftment, conservation, population management and relief of natural calamities.
Godrej touches lives of millions of Indians everyday. To them it is a symbol of enduring trust and reliability in a changing world. Today 'Godrej' is a bridge between the future and a hundred years of history. In an economy restless to compete in the global markets Godrej remains a leader in its field.
HOME APPLIANCES
Godrej & Boyce Mfg. Co. Ltd. – Appliance Division is in the business of Manufacturing Refrigerators, Washing Machines and Air Conditioners.
Godrej has been manufacturing refrigerators in India since 1958. From creating a revolution with PUF (Polyurethane Foam) in 1989 to the launch of Godrej Pentacool in 2001, it has been at the forefront of product innovation. It is hardly surprising therefore that Godrej continues to be the most preferred brand in refrigerators and enjoys the trust of millions of consumers all over the country.
Godrej has been voted the 'Most Trusted' brand in the Economic Times ORG MARG study conducted in 2002. Godrej was also the first company to have sold 1 crore appliances, a distinction that is very difficult to emulate.
Godrej started manufacturing Washing Machines in 1996, which provides a complete range of Hi – Tech Semi Auto and Fully Auto Washing Machines.
Its manufacturing facilities are located in Mumbai, Shirwal (near Pune) & Mohali (near Chandigarh).
In addition to the above products, it also has the Godrej Smart Care Service brand to provide excellent 'After Sales Service'. Consumers continue to rate the Godrej’ After Sales Service ‘as the best in the industry.
After the success achieved in the domestic market, Godrej is also looking at Exports in a big way and has launched its Refrigerators and Washing Machines in Sri Lanka. Its products are also exported to Singapore, Afghanistan, the Middle East, Egypt, Kenya, Rwanda, Bahrain and Oman.
CORPORATE SHARED VALUES1. Commitment to Quality 2. Customer Orientation 3. Dedication & Commitment 4. Discipline 5. Honesty & Integrity 6. Learning Organization 7. Openness & Transparency 8. Respect/Care & Concern for People 9. Teamwork10. Trust
CORPORATE MISSION
We shall operate in existing and new businesses, which capitalize on the Godrej brand and our corporate image of reliability and integrity.
Our objective is to delight our customer both in India and abroad.
We shall achieve this objective through continuous improvementin quality, cost and customer service.
We shall strive for excellence by nurturing, developing and empoweringour employees and suppliers. We shall encourage an open atmosphere,conducive to learning and teamwork.
L.G. ELECTRONICS
HISTORY BY YEAR
YEAR EVENTS
1947 Established Lak Hui Chemical Industry (currently LG Chemical Ltd.) – Jan.
1948 Founded Cosmetics lab - April
1952 Started to produce the first plastic daily necessities in Korea - August
1953 Lak Hui Chemical Industry completed construction of the plant in Bujeon -Oct.
Established Lak Hui Industry (currently LG International Co.). – Jan.
1954 Lak Hui Chemical Industry completed construction of plant in Yangjeong -Oct.
Lak Hui Chemical Industry developed. - Oct.
1956 Lak Hui Chemical Industry started to produce the first PVC pipe in Korea.-May
Lak Hui Industry changed its name to Bando Corp. (currently LG International
Corp.) - June
1958 Established Goldstar Co., Ltd. (currently LG Electronics Inc.) – Oct.
1959 Goldstar Co.Ltd. developed the first radio in Korea. - Jan.
1960 Established Lak Hui Oil and Fat Industry Co.Ltd. –Feb.
Goldstar Co.Ltd. Developed the first electric fan in Korea - March
Lak Hui Oil & Fat Industry completed construction of plant in Choeup-dong. -
April
1961 Goldstar Co., Ltd. developed the first telephone in Korea. - July
1962 Goldstar Co., Ltd. Introduced private loans for the first time in Korea. - Feb
Established Korea Cable Industry (currently LG Cable Ltd.) - May
Established Lak Hui Vinyl Industry - August
Goldstar Co.Ltd. exported radio for the first time in Korea – Jan
1963 Lak Hui Vinyl Industry completed construction of the plant in Dongnae.- August
Goldstar Co. Ltd. completed construction of the plant in Oncheon. - Oct.
1964 Goldstar Co. Ltd. developed the first integration wattmeter in Korea. - Jan.
Acquired the Kukje Daily Newspaper - May
Goldstar Co., Ltd. developed the first EMD automatic telephone switch in
Korea.- Jan.
1965 Goldstar Co.Ltd. developed the first refrigerator in Korea. - April
Bando Corp. Established the overseas branch office in Tokyo, Japan - June
Goldstar Co., Ltd. opened the vocational training center. – Oct.
1966 Lak Hui Chemical Industry merged Lak Hui Vinyl Industry -Jan.
Lak Hui Oil & Fat Industry completed construction of plant in Anyang - March
Lak Hui Oil & Fat Industry developed first synthetic detergent in Korea - April
Korea Cable Industry completed construction of the plant in Anyang. - April
Goldstar Co., Ltd. developed the first black and white TV in Korea. - August
Goldstar Co., Ltd. merged Korea Cable Industry. - Sept.
1967 Established Honam Petroleum Refinery Co. Ltd (currently LG-Caltex Oil
Corp.)- May
Goldstar Co., Ltd. introduced the system of operation division - June
Lak Hui Oil and Fat Industry developed the first shampoo in Korea - July
1968 Lak Hui Chemical Industry introduced the system of operation division. –Jan.
Constituted the group-level coordination office - Jan.
Lak Hui Chemical Industry merged Lak Hui Oil and Fat Industry. - Feb.
Established Korean Continental Carbon - March
Goldstar Co.Ltd. developed the first room air-conditioner in Korea. - March
Bando Corp. completed construction of the plant in Pusan. - June
Established Yonam Library and donated it to Jinju. – Jan.
1969 Moved headquarters of the group to Seoul - Feb.
Goldstar Co., Ltd. developed the first elevator and escalator in Korea. – Feb.
Goldstar Co., Ltd. developed the first washing machine. - May
Goldstar Co.Ltd developed the first Wellmantel cable in Korea. - June
Honam Petroleum Oil completed construction of the plant in Yeocheon. - June
Korea Continental Carbon completed construction of plant in Bupyeong. - Oct.
Established Goldstar Telecommunication - Oct.
Established Goldstar Cable (currently LG Cable Ltd.) - Oct.
Lak Hui Chemical Industry initiated public stock offering. - Oct.
1970 Cha-Kyung Ku got into office as the second chairman. -Jan.
Goldstar Co., Ltd. went public. - April
Acquired Bumhan Marine and Fire Insurance (currently LG Insurance Co.,
Ltd.). - April
Lak Hui Chemical Industry developed the first casting leather in Korea.- July
Established Goldstar Alps Electronics - August
Established Goldstar Electric – Feb.
1971 Goldstar Telecommunication completed construction of the plant in Anyang-si.
- March
Acquired Korea Mining & Smelting Corp.(KMSC) (currently LG-Nikko Copper
Inc.) - June
Acquired Pusan Munhwa TV Broadcasting – Oct
1973 Goldstar Co., Ltd. developed the first cassette recorder in Korea. - March
Goldstar Alps Electronics completed construction of plant in Yangsan-si. -May
Established the Yonam Educational Institute (currently the LG Yonam
Educational Institute) - May
Established Kukje Securities (currently LG Investment & Securities Co., Ltd.) -
June
1974 Lak Hui Chemical Industry changed its name to Lucky Co., Ltd. (currently LG
Chemical Ltd.) – Feb.
Lucky completed construction of the plant in Ulsan. - April
Opened Yonam College of Livestock (currently Yonam College of Agriculture)
May
Established Goldstar Instrument & Electric - June
Goldstar Telecommunication went public. - June
Goldstar Electric succeeded to develop the first PMC single station equipment
in Korea. -July
Bando Corp. began to market in Korea. - Feb.
Goldstar Electric completed construction of the plant in Osan-si. –Feb.
1975 Established Huisung Industry – Feb.
Lucky produced the first Sorbitol in Korea. - Feb.
Goldstar Instrument & Electric completed construction of plant in Osan. -June
Goldstar Co., Ltd. completed construction of the plant in Gumi. - June
Goldstar Telecommunication developed the first electronic key-phone in Korea.
Oct.
Korea Mining & Smelting Corp. went public. – Jan.
Acquired Samju Building (currently LG Yeokjeon Building) - Feb.
Lak HuiDevelopment Co., Ltd. changed its name to Lucky Development Co.,
Ltd. (currently LG Engineering & Construction Co., Ltd). - Feb.
Goldstar Co., Ltd. established the Central R&D Institute. - Feb.
1976 Bando Corp. went public. - Jan
Established Goldstar Precision Industry (currently LG Innotek Co., Ltd.) –Feb.
Goldstar Electric went public.- May
Bumhan Marine and Fire Insurance went public. - June
Lucky began to produce the first FRP bath-tub UBR in Korea. - July
Bando Corp. was approved to be a general trading corporation. – Jan.
Goldstar Co., Ltd. completed construction of the plant in Changwon .- Jan.
Lucky began to produce PVC resin. – Jan.
1977 Goldstar Cable went public.- June
Gold Star Precision Industry completed construction of the plant in Gumi. - July
Goldstar Cable began to produce first standard coaxial cable in Korea. -July
Goldstar Telecommunication developed the first electric switch. In Korea. July
Goldstar Co., Ltd. developed color TV. - August
Goldstar Instrument & Electric developed ELCB. – Oct.
Established Lucky Foreign Engineering $ Construction – Oct.
Lucky completed construction of the plant in Yeocheon. –Jan
Lucky began to produce the first glass fiber in Korea. – Jan
1978 Established Lucky Petrochemical (currently LG Petrochemical Co., Ltd.) March
Lucky developed the first PVC window frame in Korea. - March
Goldstar Cable completed construction of the plant in Gumi. - May
Acquired three affiliates of Suttong including Suttong Electric Co., Ltd. - May
Goldstar Instrument & Electric developed the first 154KV EHV(Extra High
Voltage) Gas Circuit Breaker(GBC) in Korea. - July
Korea Continental Carbon Co., Ltd. changed it’s to Lucky Continental Carbon
Co., Ltd. - August
Goldstar Instrument & Electric went public. – Sept.
Established Lucky Engineering - Oct.
Goldstar Co., Ltd. achieved exports to the amount of one hundred million
dollars. - Feb.
1979 Established the symbol mark of group - Jan.
Lucky Development merged Lucky Foreign Engineering & Construction - Jan.
Seotong Electric changed its name Shinyoung Electric Co., Ltd. - Feb.
Established Lucky Poly-chemical - March
Lucky Continental Carbon went public. -June
Goldstar Co., Ltd. developed the first VTR in Korea. - July
Established Lucky Engineering – Sept.
Goldstar Telecommunication developed fully electronic digital switch. –Sept.
Lucky Engineering completed construction of the plant in Gumi. – Feb.
Lucky completed construction of the Central R&D Institute. - Feb.
Korea Mining & Smelting Corp. completed construction of the refinery in
Onsan. - Feb.
Goldstar Instrument & Electric established the on-site joint plant in Thai. - Feb.
1980 Goldstar Instrument & Electric completed construction of the plant in Cheongju.
- Feb.
Goldstar Cable developed optical communication system and succeeded in the
call testing. - April
Lucky Continental Carbon completed construction of the plant in Yeocheon. -
May
Opened Yonam Memorial Hall - May
Acquired Pusan Investment and Finance - June
Lucky completed construction of the plant in Onsan. - August
Lucky began to produce the first dispersed dyes in Korea. - August
Goldstar Co., Ltd. exported manufacturing technique of the black and white
color TV to Thai. - Sept.
1981 Goldstar Co., Ltd. developed the first electronic VTR . - May
Honam Petroleum Oil completed extension of the plant in Yeosu. - June
Lucky Development went public - July
Lucky Engineering developed the first computer in Korea. - August
Lucky achieved exports to the amount of one hundred million dollars. – Feb.
1982 Goldstar Co., Ltd. founded quality examination institute. - March
Goldstar Co., Ltd. developed the first color video camera in Korea. - May
Goldstar Telecommunication developed superconducting (Nuclear Magnetic
Resonance-Computed Tomography). - June
Korea Mining & Smelting Corp. merged Onsan Copper Refinery. - July
Lucky completed construction of the plant in Cheongju. – Sept.
Goldstar Co., Ltd. completed construction of the plant in Huntsville, USA. –Oct.
Established Goldstar Investment and Finance - Feb.
1983 Goldstar Co., Ltd. founded Design R&D Institute. - April
Lucky developed the first engineering plastic products in Korea. - May
Goldstar Co., Ltd. developed the first compact disk player in Korea - July
Goldstar Alps Electronics developed first video head for VTR in Korea. -July
The group established Software Development Center. - August
The group opened the office in Sunnyvale, U.S.A. – Sept.
Goldstar Cable developed 154kV XLPE cable. - Sept.
Goldstar Cable acquired the plant of Hanjung Inc. in Gunpo (heavy machinery
plant). – Oct.
Lucky Securities merged Daebo Securities Co., Ltd. – Jan
Lucky Continental Carbon produced the first color-black in Korea. – Jan.
Bando Corp. achieved exports to the amount of ten million dollars. - Feb.
1984 Changed the symbol mark of the group - Jan.
Lucky re-entered into the business of cosmetics. - March
Lucky acquired the plant of Korea Chemical Co., Ltd. in Naju. - March
Lucky Goldstar (currently LG International Corp.) participated in overseas oil
field development. -March
Opened Yonam Junior College of Engineering (currently Yonam College of
Engineering) - May
Goldstar Co., Ltd. completed construction of the plant in Pyeongtaek. - May
Established Goldstar-Honeywell - May
Lucky Engineering completed construction of VLSI MOS plant. - May
Lucky established R&D Center in Emeryville, USA. - June
Lucky Development was given $1 Billion Tower Award for overseas
construction.-June
Established LG Ad Inc. - July
Established Yeosu Energy (currently LG-Caltex Gas Co., Ltd.) – Sept.
Goldstar Co., Ltd. developed the first multiplex sound color TV in Korea. - Oct.
1985 Lucky Goldstar completed construction of the first Lucky Goldstar R&D
Information Center in Anyang.- Jan.
Lucky developed synthetic vitamin E for the first time in Korea .- Jan.
Established Goldstar Software –Feb.
Goldstar Co., Ltd. issued thirty billion dollars of FRN(Floating Rate Note) In
London, USA. - April
Goldstar Alps Electronics completed construction of plant in Gwangju. -April
Lucky¡¤Goldstar Co.Ltd. drew 30 billion dollars of Commercial Paper. -May
Lucky Engineering developed the first 64K SRAM in Korea .- June
Goldstar-Honeywell completed construction of the plant in Bupyeong. – Sept.
Goldstar Co., Ltd. opened the product examination institute. - Sept.
Goldstar Cable developed the first laser machines in Korea. - Oct.
Goldstar Co., Ltd. developed the first single unit video 8mm VTR in Korea.-Oct.
Acquired Donghae Mutual Saving and Finance (currently Bumin Mutual Saving
& Finance Corp.) - Jan.
Lucky Engineering developed the first 1M bit MOS ROM in Korea. - Jan.
1986 Lucky Engineering acquired the semiconductor production facility of Korea
Electro technology Research Institute in Gumi. – Jan.
Lucky developed the first nonpolluting pesticides in Korea. – Feb.
Established Lucky Economic Research Institute (currently LG Economic
Research Institute) - April
Goldstar Co., Ltd. exported electronics technology to Turkey. - May
Goldstar Co., Ltd. established the field corporation in Germany. -June
Lucky acquired Daesung Ethanol Industry (Ethanol Plant in Yeocheon). - July
Goldstar Co., Ltd. developed the first single unit TV VTR in Korea. -July
Goldstar Investment and Finance went public.-August
Established Goldstar-Hitachi System –Sept.
Lucky completed construction of NPC petrochemical plant in Saudi-Aravia-Oct.
Lucky Goldstar Industry completed construction of Bando Fashion Building.-
Oct
Goldstar Cable developed the first NiTi Shape Memory in Korea.-Jan.
Lucky Engineering developed the first FAST 256K SRAM in Korea. -Feb.
Lucky Goldstar completed construction of Da-dong Building (currently LG Da-
dong).-Feb.
1987 Started F-88 project – Jan.
Established Goldstar Components Co. Ltd.-Jan.
Established S.T.M Co., Ltd. (currently LG-EDS Systems, Inc.) -Jan
The president Cha-Kyung Koo took office as the chairman of The Federation of
Korean Industries. -Feb.
Established Goldstar Industrial Systems (currently LG Industrial Systems
Corp.) –Feb.
Lucky completed construction of the plant in Gumi.-April
Lucky developed the first silicon wafer in Korea. - April
Goldstar Co. Ltd. completed construction of second plant in Changwon.-April
Goldstar Co., Ltd. completed construction of the R&D Information Center. -May
Opened Yonam Science Hall (currently LG Science Hall) -July
Opened LG Communication Center -July
Established Lucky Oil Co., Ltd. -July
Goldstar Co. Ltd. Developed first amorphous silicon solar battery in Korea -July
Goldstar Co.Ltd. developed the first laser beam printer in Korea. –Sept.
Goldstar Instrument & Electric developed robot in rectangular coordinate form.
-Sept.
Completed construction of Lucky Goldstar Twin Tower (currently LG Twin
Tower) -Oct
Goldstar Co. Ltd. completed construction of tmagnetic plant in Cheongju.- Jan.
Goldstar Co.Ltd. Completed construction of local plant in West Germany. -Jan
Goldstar Industrial System completed construction of plant in Changwon. - Jan
Established LG Credit Card (currently LG Capital Service Corp.) – Feb.
Goldstar Co.Ltd. developed first single unit camera VHS MOVIE in Korea.-Feb
1988 Completed construction of Lucky Goldstar Mapo Buiding (currently LG Mapo
Building) -Jan
Goldstar Co.Ltd. developed first electro-deodorizing refrigerator in Korea -Jan
Established Lucky Investment Consulting (currently LG Investment Trust
Management Co., Ltd.) - April
Goldstar Industrial Systems developed solar photovoltaic power generation
system. -April
Lucky completed construction of the plant in Pyeongtaek. -June
Lucky developed the first digital head slider in Korea. -June
Goldstar Co.Ltd. completed construction of micro oven plant in Turkey. -June
Goldstar Co.Ltd. Registered brand in SSR. - July
Lucky developed the first nonpolluting pesticides. -July
Lucky Goldstar opened LG human resource development center of group -Oct
1989 Hotel Intercontinental in Seoul opened. –Jan.
The Yonam Foundation initiated to support professors for overseas research.
Established Lucky Allied Plastics – Feb.
Lucky Goldstar opened History Hall. -May
Established Goldstar Electron -May
Goldstar Co.Ltd completed construction of the field plant in Thai.-June
Goldstar Co. Ltd. established the joint work corporation in Egypt.- June
Goldstar Industrial Systems developed the fourth direct drive ultra precision
robot in the world.- Sept.
Goldstar Co. Ltd. completed construction of microwave oven plant in UK.–Sept.
Lucky Goldstar completed construction of the building of the headquarters in
USA.-Jan.
Lucky LG Metals Corp. (currently LG-Nikko Copper Inc.) completed
construction of the plant for sulphuric acid of high purity in Onsan.-Jan.
1990 Lucky established the joint corporation in Malaysia and Thai-Jan.
Goldstar Co., Ltd. established the joint corporation producing TV components
in Egypt.- Feb.
Declared management concepts and philosophy for the 21st century -Feb.
Founded LG Twins Baseball Team -March
Established a code of conduct-April
Lucky completed whole construction of the large petrochemical complex in
Yeocheon.-May
Goldstar Co.Ltd. Completed construction of joint plant in the Philippines. -May
LG Twins baseball team won the championship at the Korea Series '90 in the
year of foundation.-Oct.
Lucky Goldstar Bulls Football Team won the championship in the Professional
League. (currently LG Cheetahs Football Team) -Jan.
1991 Lucky commercialized a cure of leukemia, gamma interferon. - Jan.
Goldstar Information and Communication established the joint corporation for
Telecommunications equipment in Rumania. –Feb.
Established Lucky MMA (currently LG MMA corp.) -March
Lucky established the joint corporation producing PVC. - March
Lucky commercialized polyacetal resin for the first time in the world. -April
Established Lucky Goldstar Welfare Foundation (currently LG Welfare
Foundation) - May
Goldstar Co. Ltd. completed construction of color TV plant in Republic of
Kyrgizstan. -June
Goldstar Information and Communication established the joint corporation for
Telecommunications equipment in Russia. - August
Lucky Petro-chemical Industry completed construction of NCC plant in
Yeocheon. - Sept.
Lucky Goldstar Industry was given Day of Trades '30$ Billion Tower Award for
exports on Annual Trade Day. -Jan.
1992 The group declared "the Month of Lucky Goldstar Customers"-April
STM completed construction of Bupyeong Information Technology Center
(ITC) -April
Goldstar Co.Ltd. Completed construction of color TV plant in Jordan -April
LG Credit Card reached one million members of credit card. -June
Established Seoul Futures -July
Goldstar Cable completed construction of the joint corporation producing
electric wires in Malaysia. –Sept.
Lucky Goldstar Welfare Foundation opened Seodaemun Comprehensive
Community Welfare Hall. –Oct.
Lucky established the joint corporation of cosmetics in China-Jan.
Goldstar Information and Communication developed switch. - Jan.
1993 Held Skill Olympics –Jan.
Goldstar Information and Communication held the opening ceremony of in
Vietnam. -Feb.
Lucky commercialized a cure of dwarfism Utropin.- Feb.
Started to operate Echo-Call, the comprehensive customer information system-
April
LG Mart reached two hundred stores of LG25 (CVS).- May
Goldstar Co.Ltd. Developed 32 inches color cathode-ray tube for HDTV -May
Goldstar Co. Ltd. completed construction of TFT-LCD plant –Sept.
Lucky Development was appointed as the construction company of Seohae
Bridge.-Oct.
1994 Established LG Market -Feb.
Goldstar Co. Ltd. established the joint plant producing VCR in Shanghai,
China.-March
Lucky Goldstar opened the recreation center for the employees-July
Goldstar Information and Communication selected as a Korean standard
switch.-July
Lucky established joint corporation for producing PVC in Taijin, China. –Sept.
Lucky developed the first Styryl dispersed dyes in the world.-Sept.
Lucky completed the first construction of Daeduck technology R&D in
Chungnam. -Oct.
LG Twins won the championship at the Korean Series '94. -Oct.
Established Korea Home Shopping (currently LG Home Shopping Inc.) -Feb.
1995 Lucky Goldstar changed its name to LG .-Jan.
Bon-Moo Koo took office as the third Chairman of the group-Feb.
LG Electronics Inc and LG Cable Ltd. completed construction of the joint plant
in Vietnam.-March
LG Electronics Inc. declared Labor and Management Charter for the first time
in Korean company-April
LG Electronics Inc. commercialized the first CDMA system in Korea. -May
LG Chemical Ltd. established the corporation producing a toothpaste in Beijing,
China. -June
LG Electronics Inc.acquired Zenith,largest electronics company in USA.-July
LG Electronics Inc. established the joint corporation for air conditioners, and
microwave ovens in Tianjin, China.-August
LG Home Shopping Inc. started to broadcast home shopping program.- August
Bando Fashion changed its name to LG Fashion. –Sept.
Honam Oil Refinery completed construction of the largest facility cracking
heavy distillates in the world.-Oct.
Established LG Sangnam Press Foundation -Jan.
1996 LG held Skill Olympics in Bali, Indonesia. -Jan.
LG Electronic Components completed construction of the plant for electronic
components in China -March
LG, established in India. -March
LG declared "Leap 2005" and re-established the anniversary of the foundation.
-March
LG opened the first digital library -April
LG Electronics Inc. completed construction of color brown tubes plant in China.
-May
LG won the domestic PCS license. -June
LG acquired Petro Bank of Poland. -June
Established LG Telecom Ltd. -July
LG Electronics Inc. completed construction of the Comprehensive Electric
Manufactory in Indonesia. -July
Established LG Energy Co., Ltd. –Oct.
LG Chemical Ltd. established the join corporation for ARS production in China.
-Oct.
LG Electronics Inc. established LG-IBM PC COMPANY.-Oct.
LG Department Store Co., Ltd. opened the branch store in Bucheon. –Jan.
LG Chemical Ltd. acquired Hindustan Polymer Company .-Jan.
1997 LG Electronics Inc. began construction of the comprehensive electric complex
in Wales, UK. -Jan.
LG Chemical Ltd.developed the first new-material herbicides in the world. -Feb.
LG-Caltex Oil acquired Kukdong City Gas. Co., Ltd. -March
LG established and declared the "Environment Declaration". - March
Founded "LG Sakers", a professional basketball team. -March
LG Chemical Ltd. developed the first Quinoline antibiotic in the world and
exported it to Smithklein Beecham -May
LG Cable Ltd. completed construction of the plant for electric cable in Vietnam.
-June
Established LG Internet –Sept.
LG Telecom Ltd. initiated commercial service of PCS.-Oct.
LG Capital Services Corp. started to issue LG-High Card.- Oct.
LG Chemical Ltd. completed construction of second plant in Cheongju. / Oct.
LG Industrial System Corp completed construction of the comprehensive
manufactory in China. -Oct.
Established Yonam Evergreen Foundation -Feb.
1998 LG converted its operation system into an 'emergency operation'. -March
LG Department Store Co., Ltd. opened the branch store in Kuri. -April
LG Capital Services Corp. reached one million members of -April
Opened LG Youth Science Hall in Pusan -May
LG Chemical Ltd. completed construction of the joint plant for PVC, dispersed
dyes, flooring and Sorbitol in China.-May
LG Electronics Inc. completed construction of TV plant in Kazakhstan. -May
LG established in Germany.-July
LG Chemical Ltd. completed construction of ABS resin plant in Ningbo, China.
-July
LG Telecom Ltd. Formed strategic alliance with BT (attracted four billion
dollars). –Oct.
LG Chemical Ltd. disposed of the Carbonblack business. – Jan.
LG-Caltex Oil completed construction of Central Technology R&D Institute. -
Jan.
Established LG LCD Co. Ltd. -Feb.
1999 Established LG DOW Polycarbonate -Jan.
LG Electronics Inc. adopted 'The Joint Declaration of the Labor and
Management of New Millennium'.-March
Sold stake of LG Honeywell to Honeywell USA. -April
Sold LG Semiconductor to Hyundai Electronics Industries. - May
Completed construction of LG Munrae Building. -June
Electronics Unit declared 'Digital LG', a new vision of the 21st century. -July
LG Engineering & Construction acquired LG Engineering.-August
LG AD Inc. went public and listed on the stock exchange. -August
Established LG-Nikko Copper Inc. –Sept.
LG Securities merged LG Finance and re-started as LG Investment &
Securities. -Oct.
LG LCD developed the first 22" TFT-LCD in the world. –Oct.
LG-Philips LCD officially launched. – Jan.
LG completed construction of the LG Kangnam Tower. – Jan.
LG Electronics Inc. developed the thinnest PDP in the world. -Jan.
LG Insurance was separated from LG. – Jan.
2000 Obtained DACOM as a new affiliate.-Jan.
LG Chemical Ltd. completed a raw material plant for Quinolone Antibiotic-Jan.
LG Artscenter was opened.-March
LG Precision changed its name as LG Innotek Co. Ltd.-May
LG-Caltex Oil Corp. established LG Power Co. Ltd. a private electricity
generation company.-June
LG-Caltex Oil Corp. completed the extension of the world's biggest aromatic
production facilities.-July
LG-Caltex Oil Corp. established Oil Sorabol City Gas Co.Ltd. -July
LG Electronics Inc. and LG Information & Communications, Ltd. were merged.
–Sept.
LG-Caltex Gas Co. Ltd. completed the construction of Inchon LNG Base.-Sept.
LG Industrial System Co. Ltd. completed the construction of the Power Testing
& Technology Center.-Sept.
LG Electronics Inc. completed a flat CPT manufacturing plant for in Changsha,
China.-Oct.
LG Cheetahs won the Championship Matches of the 200 Korean Professional
Football League (K-League.) -Nov.
LG Chemical Ltd. took over the PVC business of Hyundai Petrochemical Co.
Ltd.-Nov.
LG-Caltex Oil Corp. completed the construction of the oil storage reservoir in
Mokpo. -Dec.
2001 Liquidated LG Internet. -Jan.
Obtained Haeyang City Gas Co., Ltd as a new affiliate.-March
Dacom International changed its name to Dacom IN Corp. -March
LG Chem was separated into 3 companies (LGCI, LG Chem, LG Household &
Healthcare Ltd.). -April
Liquidated Dacom Satellite Multimedia System. -May
2003 Divestment of LG Cable Ltd., LG Nikko Copper Inc., LG-Caltex Gas Co.
and Kukdong City Gas Co. -Nov.
Divestment of DACOM IN Corp. -Nov.
Divestment of LG Industrial Systems Co.Ltd. -Dec.
2004 Divestment of LG Card Co., Ltd. – Jan.
ABOUT-L.G. ELECTRONICS
LG was established in 1947 as Korea's first chemical company, a success compounded when LG also became the nation's first electronics company with its expansion into home appliances in 1958.
Today, LG is Korea's second largest business group, comprising 44 affiliates. 20 of which are currently listed on the Korea Stock Exchange or KOSDAQ, and over 300 subsidiaries and branch offices with 140,000 employees worldwide.
The wide array of activities that LG conducts are coordinated within four highly focused business sectors: Chemicals & Energy, Electronics & Telecommunications, Finance, and Services. Each sector has undergone systematic changes, with improved financial compositions, restructured business portfolios, and realigned equity investment structures.
LG Electronics is a major global player in electronics & telecommunications, operating 72 subsidiaries around the world with over 55,000 employees worldwide. LG Electronics focuses on Digital TV, CD-RW, DVD, CD-ROM, DVD-ROM Drives, PCs, Monitors, Mobile Handsets, CRTs and PDPs.
Restructuring plan of LG Electronics was rolled-out in three strategic phases:
The first phase-from 1998 to 1999- resulted in a more solid corporate financial structure amid a nationwide recession. From the beginning of this process, LG has attracted US$6.5 billion in foreign investment capital, the most ever for a Korean company.
The second 'select and focus' phase began in 2000-which strengthened core businesses through rationalization measures such as selling non-core assets, separating non-core affiliates, and spinning off non-core units.
The current, third, phase [2001 through 2003]-heralds the reorganization of the management structure of the entire LG Group. In July 2001, LG announced a '21st Century Vision Management Structure,' a major part of which entails the conversion of LG into an independent group holding company.
LG aims to simplify its ownership and governance structure-eradicating complex multiple cross investments among affiliates-by placing affiliates under the control of a group holding company.
LG Electronics is strengthening core competencies even more to further its reputation as the "Digital Leader" in electronic products and equipment in the digital era.
Brief Information:
Corporate Name LG Electronics Inc.Established October 1, 1958 (As a private Company)Corporate Office LG Twin Towers 20,Yoido-dong, Youngdungpogu
Seoul, Korea 150-721 Tel: 82-2-3777-1114URL: http://www.LGE.com
Chairman & CEO Mr. S.S.KimBusiness Area and Main Product
Digital Display & Media Company Digital TV, PDP, Monitor, CD-ROM Drives, DVD-ROM Drives, CD Rewritable Recorder, VCR, DVD Player, Audio, Security System, Recording Media, Video Phone, PC Camera, Banking Automatic System , PCB
Digital Appliance Company Air Conditioner, Refrigerator, Microwave Oven, Washing Machine, Vacuum Cleaner, Compressor for Air Conditioner, Compressor for Refrigerator
Telecommunication Equipment & Handset Company TDX, STAREX, optical switching systems, Implementation of advanced IBS (Information Building System), System Integration (SI) service, etc.Implementation of advanced IBS (Information Building System), System Integration (SI) service, Handsets for satellite, mobile multimedia and IMT-2000 services, etc.
Number of Employees 51,300 (25,700 in Korea/ 25,600 overseas)
Financial Highlights (in billion won)
1997 1998 1999 2000 2001 2002SALES
9,239.7 9,852.8 10,546.1 14,835.7 16,601.0 18,60
2.9
Domestic3,503.2 2,569.8 2,704.0 4,881.2 6,084.1 6,654
.9
Export5,736.5 7,283.0 7,842.1 9,954.5 10,516.9 11,94
8.0Ordinary Ordinary 115.9 167.1 2,587.9 728.5 573.7 675.2
Profit Profit
PHILOSOPHY
LG's business activities have been guided by ideals of research and development, progress, and harmony. Since its foundation, these principles have been incorporated and redefined in LG's new management philosophy.
Creating value for Customers through management based on esteem for human dignity.
Creating value for Customers- the purpose is to continually create new value for customers. In the process of creating value for customers, LG will naturally innovate and develop the products and services for their customers wants, moving one step closer to their goal of providing the utmost value.
Management Based on Esteem for Human Dignity -It is people that are the ultimate key to discovering and creating new value. LG's organizational operations respect the ingenuity and individuality of each and every employee, concentrating on the cultivation of competent, professional personnel in every business field.
VISION- ‘A Digital Leader’
While creating innovative digital products and services that make life more comfortable and enjoyable, LG intend to be a leader in digital management.
Core Values
1. Changing your way of thinking can change the world. We of LG Electronics change ours constantly.
2. Hatching new ideas is how we give the customer greater value. A corporation's core values are mirrored in its business performance.
3. Innovation, Openness, and Partnership are the new core values we have recently set ourselves.
Innovation: Creating new and unique values
Openness: Responding to the changing environment with an open mind and flexible behavior
Partnership:Establishing cooperative relationships with the WIN-WIN reciprocity to ensure the best performance as we enter fully.
Core Competences
LG's digitalizes are building up marketing experience and technical expertise for greater competence, intriguing designs for an intricate network. The core competences they have built up are indispensable for their growth into a global digital leader. They hatch products from many good ideas. But the more good products they roll out, the keener they feel the need for proficient skills in marketing, technology, design, and networking.
Marketing: The ability to clearly understand and analyze customer needs and then link them to business, continuously controlling the brand image.
Technology: The ability to develop unique product concepts with new proprietary technology ahead of others and then commercialize them.
Design: The ability to plan projects and business effectively to maximize results.
Networking: The ability to create win-win relationship opportunities based on one's strengths in specific sectors and makes them into assets.
LG in India:
Paste from History- Godrej file
WHIRLPOOL-HISTORY-from history-Godrej file
History by year:
YEAR EVENT
1957: Purchase of equity stake in Brazilian appliance company, Multibras, renamed as Bras temp in 1972.
1969: Entry into Canada through a majority stake in Inglis which became a fully owned subsidiary in 1990
1976: Purchase of stakes in Brazilian Companies, Consul and Embraco
1986: Purchase of Fiat's Aspera (compressors) division.
1987: Formation of joint venture with the TVS group in India.
1988: Formation of joint venture with Vitromatic of Mexico.
1989: Formation of Joint-Ventures with Philips in Europe to market Bauknecht ,Philips, Ignis and Laden brands
Establishment of North American Appliance group
Commencement of World Washer Project
1990: Formation of Co-branding agreement with Philips
Formation of Joint-Venture with Matsushita Electric Industrial
Creation of Whirlpool Overseas Corporation for Marketing Activities outside North America
1991: Buyout of Philips in the joint venture.
Creation of two global business units for compressors and microwave ovens.
1992: Entry into Slovak Republic
Purchase of Philips’ white goods business in Argentina
Withdrawal of co-branding agreement with Philips
Restructuring of Whirlpool Europe
Creation of a global small appliance business unit
1993: Restructuring of the North American Appliance Group
Replacement of Whirlpool overseas Corporation by two separate regional organizations in Asia and Latin America
Beginning of coordinated attempts to strengthen presence in Asia.
1994: Formation of Joint-venture in Taiwan
Merger of Consul and Brastemp to form Multibras
Purchase of controlling interest in Kelvinator (India) Ltd and Joint-Venture with the TVS group in India.
Expansion of business in China with majority of ownership in Joint-ventures.
1999: Introduction of Catalyst TM Cleaning Action – a laundry innovation that promises America’s cleanest laundry.
(Source: Whirlpool website: - www. Whirlpoolcorp. Com)
ABOUT-WHIRLPOOL CORPORATION WORLDWIDE
Bringing innovation and quality to Every Home ... Everywhere
Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of over $11 billion, 68,000 employees, and nearly 50 manufacturing and technology research centers around the globe. The company markets Whirlpool, KitchenAid, Brastemp, Bauknecht, Consul and other major brand names to consumers in more than 170 countries.
Whirlpool's global platform provides our operations with resources and capabilities no other manufacturer can match. Whirlpool's global procurement, product development and information technology organizations help our operations reduce costs, improve efficiencies and introduce a continuous stream of relevant innovation to consumers.
Inspired by the bold innovations and designs, customers around the globe trust Whirlpool to make their lives easier. More than ever before, the Whirlpool brands are connecting with customers in ways that will last a lifetime.
PARENT COMPANY:
Whirlpool Inc, US is the world's leading manufacturer and marketer of major home appliances. The company has principal manufacturing operations and marketing activities in North and South America, Europe, and Asia. Whirlpool's primary brand names - Kitchen Aid, Roper, Bauknecht, Ignis, Brastemp, Consul and its global Whirlpool brand - are marketed in more than 170 countries worldwide.
WHIRLPOOL IN INDIA:
WIL was incorporated in 1960 by J R Desai in collaboration with Kelvinator International Corporation, USA. Later the company integrated backwards to manufacture electrical grade stampings used in motors, compressors, super enameled copper wire and other allied products. Electrolux, Sweden, the worldwide consumer durable giant has 12.5% stake in Whirlpool. Electrolux tried to increase its holding to 51%, however, the idea was stalled due to price disagreements. In 1995, WIL negotiated with Whirlpool Inc, US, another major player in the global white goods market, who was willing to buy a company at a higher price. The deal ultimately went to Whirlpool who invested $200mn mainly to acquire 51% in Desai family owned Kelvinator of India. They set up a Rs3.65bn greenfield project in Pune to make frost-free fridges. The new management hived off the automotive and compressor divisions and amalgamated WIL with Whirlpool Washing Machines Ltd and Expo Machinery Ltd in 1996. Later in 1997
Whirlpool Financial India Private Ltd was merged with WIL. Subsequently Whirlpool Inc, increased its stake to 82.3% in the Indian arm.
WIL has its main plant at Faridabad in Haryana - to manufacture refrigerators and freezers. The washing machine unit is located at Pondicherry. In 1998, the company established yet another refrigeration plant at Ranjangaon near Pune.
Whirlpool has one subsidiary called Kelbex International Ltd, registered with the main object to engage in the business of deep sea fishing activities. There was no operation during the 2001 in the company.
FACT SHEET
2002 Financial Highlights -(Millions of dollars, except per share data)
Net sales $ 11,016
Core earnings, which excludes non-recurring items*
$ 420, or $6.07 per share on a diluted basis
Earnings from continuing operations
$262
Net earnings (loss) ($394), or ($5.68) per share on a diluted basis
Shares outstanding (in 000's at 12/31/02)
68,226
Number of employees (at 12/31/02)
68,272
*Non-recurring items in 2002 included cumulative effects of changes in accounting principle, discontinued operations, restructuring and related charges and product recall charges, as well the write-off of asset impairments. See the company's 2002 annual report for details.
Corporate Purpose
Vision
As Whirlpool Corporation grows, so, too, does the global community that Whirlpool Foundation hopes to impact. Our vision states: Whirlpool Foundation will contribute to the global social concerns found in our home communities through grants, volunteerism and leadership. The contribution of these resources will enable our company to express and demonstrate our spirit of social responsibility by investing back into the very communities that drive our success.
Our Vision: Every home, everywhere with pride, passion and performance.
We create the world's best home appliances, which make life easier and more enjoyable for people. Our goal is a Whirlpool product in ever home, everywhere.
We will achieve this by creating:
Pride: in our work and each other
Passion: for creating unmatched customer loyalty for our brands
Performance: results that excite and reward global investors with superior returns
We bring this dream to life through the power of our unique global enterprise and our outstanding people working together everywhere.
Vision and Strategy—
“Every Home... Everywhere. With Pride, Passion and Performance.
These words represent the vision that will guide Whirlpool into the future.
We create the world's best home appliances, designed to make life easier and more enjoyable for
all people. Our goal is a Whirlpool product in every home, everywhere. We will achieve this by creating:
Pride... in our work and each other Passion... for creating unmatched customer loyalty for our brands Performance... results that excite and reward global investors with superior returns
We bring this dream to life through the power of our unique global enterprise and our outstanding people... working together... everywhere.
Our employees live by the values-based strategy that has made Whirlpool the international leader that we are today. Our values represent who we are to our customers, our investors and to each other. And the way they represent the company demonstrates how we do business: the right way.
Respect
We've built an employee culture where all beliefs, perspectives and opinions are welcomed and valued. Integrity
The high road is the only one we take; from the people we hire to the clients we serve. As we often say, “There's no right way to do the wrong thing.”
Diversity
By constantly seeking fresh approaches, new ideas and different outlooks, we build our success and secure our future.
Teamwork
From the first to the last, we take each step forward as a team.
CODE OF ETHICS
BUSINESS WITH INTEGRITY
"We will pursue our businesswith honor, fairness, and respectfor the individual and the publicat large . . . ever mindful thatthere is no right way to do awrong thing."
(SOURCE: Initially adopted in 1993; revised 2002.)
ELECTROLUX KELVINATOR
HISTORY
Kelvinator India Limited (KIL) was originally a company controlled by Jamshed Desai, The brand belonged to Electrolux Group but had been franchised to KIL where Electrolux had approx.13% shareholding. In 1990 this company was bought by Whirlpool, who obtained a controlling interest with Electrolux still holding 13% share. Through negotiations, the two companies parted ways. Electrolux retained the Kelvinator brand and Whirlpool retained the manufacturing facilities and business.
The second company under Electrolux umbrella is the Maharaja International.Initially, this company was controlled by Mr. Harish Kumar, manufacturing refrigerators in the plant with approximate capacity of 20,000-25,000 units.
Electrolux obtained a controlling interest in this company in February 1995 .Over the last 2-3 years, Electrolux redesigned the plant and increased its capacity to 400,000 units, and relaunched the Kelvinator brand in January 1997. As of February 1999, this company was renamed Electrolux Kelvinator Limited (EKL) with the current shareholding pattern as follows:
Electrolux Kelvinator : 55%
Harish Kumar & associates:
26%
Public: 19%
Now EKL has a separate identity as different from Maharaja Appliances Limited, which is owned by Mr. Harish Kumar and sells products under the "Maharaja" and "Whiteline" brand names.
In order to reach scale and size, Electrolux entered into negotiations with Voltas for a new joint venture. This new joint venture was formed in October 1998 and is known as Electrolux Voltas Limited. In this company, Electrolux has 74% shareholding and the balance 26% is owned by Voltas.
The third company under the Electrolux umbrella is "Intron" which manufactures and sells front-loading washing machines sold under the brand name of Electrolux. This is a small set up, and a loss-making unit in which 74% of the shares are held by Electrolux and the balance by original promoters and the public.
KELVINATOR
Kelvinator household appliances can be found across hundreds of markets with millions of satisfied customers around the world. It’s a brand that provides functionality and performance over time.
Kelvinator is one the world’s first manufacturers and pioneers in the refrigerator industry. In 1916 the American company became one of the first in history to produce an automatic refrigerator for the household market. Since 1994 Kelvinator has been a member of the Electrolux family. The Kelvinator name is a tribute to the British scientist who had pioneered the principles of refrigeration in 1850. He was the famous physicist William Thompson, the founder of the temperature scale and knighted Lord Kelvin for his noteworthy scientific accomplishments. It is now more than 85 years since Kelvinator began to forge its reputation of quality.
Today Kelvinator is the choice for families who value many good years of service and seeks certainty that they make a sensible choice. As an owner you can be sure that Kelvinator provides functionality and performance over time. Kelvinator household appliances, such as refrigerators, freezers and air conditioners, can be found across hundreds of markets with millions of satisfied customers around the world.
FINANCIAL FACT
