``With the demand for consumer electronics growing, LG has decided to double the capacity for consumer electronics and white goods from the middle of next year,'' LGIL vice-president Rajiv Karwal told PTI.

While the production capacity of color TVs is being raised from four lakh to eight lakh numbers per annum, that of washing machines and refrigerators would be increased from two lakh numbers to four lakh each and airconditioners from one to two lakh units.

However, the company is not increasing the capacity of microwave ovens which is presently at 50,000 units annually.

Karwal said the expansion would involve an investment of over Rs 350 crore and would be funded through debt and fresh equity infusion both from the parent company and the public.

Declining to givethe details of the funding plan, Karwal said, ``It is too early to talk on the break-up of the financing plan.''

The expansion will come at the company's existing 47-acre plant at Greater Noida (Uttar Pradesh).

``Expansion will begin from mid-2000 and will be completed by the end of December 2001,'' Karwal said.

He said currently the company had separate production lines one each for TVs, washing machines, refrigerators, airconditioners and microwave ovens.

Karwal said under the expansion, new production lines would be installed for expanding the capacity.

Elaborating on the current performance of the company, Karwal said, ``In the current year, LG has already sold 2.6 lakh units of TVs and expects to touch the 3.5-lakh mark by December-end.''

``Expansion is being undertaken to meet the growing demand for white goods and TVs which has been growing by 15-16 per cent annually,'' he said.

In order to capture a greater share of this growing segment, LG is undertaking an aggressive marketing drivewith advertisement spending of Rs 40 crore in the current year as against Rs 30 crore spent last year.

``Though in absolute terms, spending will increase, in terms of percentage to sale, it will decline,'' he said.

LG had spent 6 per cent of its Rs 480-crore sales on advertisement in 1998 which will come down to around 4.5 per cent on the expected sales of Rs 900 crore by December-end.

LG has accounting year from January-December.

He said the company had also come out with special advertisments in regional languages which were being telecast at the time of the local festivals.