The company is also looking at opportunities for a joint venture to launch its range of cosmetics in the country. The company had signed a memorandum of understanding last year with groups such as Dabur, Godrej and JK Helene Curtis for exploring an alliance.LG Chemical sources said the company has already finalised plans to launch baby diapers by early August.

The company plans to position its top-selling diaper brand, Maman Premium, in direct competition with the products from the Hindustan Lever and Procter & Gamble stable in the Rs 40-crore market. The other products will be launched during the course of the year.Like groupcompany LG Electronics India, LG Chemical expects to make inroads in the market by ``ethically'' pricing the products.

LG Electronics had launched a range of televisions, refrigerators, washing machines and other white goods with ``honest pricing'' as its unique selling proposition.LG Chemical sources said the company expects to leverage the brand equity enjoyed by the LG brand in the country to make a success of its latest foray.

Maman Premium is expected to turn the heat on not just competitive brands such Pampers and Huggies, but also on a large number of imported labels available in the India such as Fittie, Baby Love, Drypers and Fixie.Sources said the diapers would be priced at Rs 16-17 a piece as against an average of Rs 20 for a similar products.

In addition, it intends to launch the diapers in smaller packs-- such as a single-visit pack of three pieces or overnight packs of five pieces. The large packs would have either 25 or 30 diapers. The product will be available in three sizes--small,medium and large.

LG Chemical sources claimed that the Maman Premium is a technologically superior product than those available in the market with features such as super absorbency, light weight, pocket absorbent system, desticking and resticking tape.The company employs ultra-thin technology for its diapers, making the product half as thick as other regular diapers in the market.

The thinness has been achieved using superabsorbent polymer (SAP) instead of cotton. The polymer also enables the diaper to absorb twice as much moisture than the products lined with cotton or fluff.LG sources say that the company is one of the three manufacturers worldwide to use this technology in baby diapers. The others are Unilever and Kao of Japan.

Unilever employs this technology only at its US facility to manufacture a premium range of Huggies diapers. LG Chemical will be the first to launch ultra-thin diapers in the country on a commercial basis.Maman Premium will be launched initially in Delhi and its satellitetowns, LG sources said.

Subsequently, the company plans to take it other metropolitan cities.By the second year, the company proposes to tap other major cities and towns across the country.LG has an almost 60 per cent share in the baby diapers market in South Korea. The company hopes to replicate its success here.

LG Chemical expects to capture a 40 per cent market share within two years of launch and further consolidate it to 50 per cent. The market is, meanwhile, expected to grow at 40-50 per cent a year.

The company has drawn up an elaborate strategy to market its products. The company proposes to use point-of-purchase promotions, sampling, chemists and tap new mothers who would be potential buyers of these diapers.