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 IndustryBPL Electrolux Kelvinator Whirlpool India L.G. Electronics Samsung India Godrej- 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 lts 165-200 lts 200-350 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 1995 1996 1997 1998 1999 2000 2001 SALES (In Million Units) 1.70 2.25 2.15 2.30 2.70 3.00 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

Whirlpool 26% Daewoo 2% BPL 5% Samsung 5%

Others 1%

Godrej Godrej 24% Electrolux Videocon L.G. Samsung Electrolux 20% BPL Daewoo Whirlpool Others

L.G. Videocon 6% 11%

(Source: A&M)

Company-wise Trends in Production: 1995-96 to 2000-01 Company Units Godrej Appliances 000 nos LG Electronics N.A. India Whirlpool India 000 nos Electrolux 000 Kelvinator nos Total Production 000 nos 95-96 841.8 N.A. 532.0 25.7 1399.5 96-97 692.2 N.A. 619.1 86.8 1398.1 97-98 825.7 N.A. 527.2 218.2 1571.1 98-99 806.0 N.A. 716.4 363.1 1885.5 99-00 708.2 N.A. 879.4 363.1 1950.7 00-01 480.9 N.A. 858.2 281.8 1620. 9

(Source: CMIE)

Company-wise Trends in Sales: 1995-96 to 2001-02 Company Godrej Appliances LG Electronics India Whirlpool India Electrolux Kelvinator Total Sales 95-96 634.95 N.A. 302.34 14 96-97 97-98 610.51 673.79 N.A. N.A. 98-99 672.10 72.70 605.44 291.04 99-00 594.77 168.78 714.86 291.04

(Rs. Crore) 00-01 365.65 342.79 773.49 322.50 01-02 386.63 N.A. 775.81 407.09

480.87 364.64 67.12 204.25

1010.69 1158.5 1242.68 1641.28 1769.45 1804.43 1569.53 (Per Cent) 1999-00 23.51 N.A. 28.26 11.51 63.28 2000-01 15.07 8.2 31.87 13.29 60.23 2001-02 14.71 N.A. 29.51 15.48 59.7 (Source: CMIE)

Trends in Market Share: 1996-97 to 2001-02 Company Godrej Appliances LG Electronics India Whirlpool India Electrolux Kelvinator Total for all companies 1996-97 36.4 N.A. 28.67 4 65.07 1997-98 36.23 N.A. 19.61 10.98 66.22 1998-99 27.17 N.A. 24.48 11.77 63.42

Market Share of Frost-Free Refrigerators (ORG MARG Retail Audit Data - September 2003) Company Godrej L.G. Whirlpool Percent Market Share 19.3 34.5 19.1

Electrolux Others

15.0 27.1 (Source: Pitch Magazine; December 2003)

RESEARCH METHODOLOGY MAIN PURPOSE: To study the impact of 4 Ps 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 Ps during the purchase of refrigerator. 2. To study the influence level of the selected aspects of the 4 Ps on their purchase. 3. To study whether the selected elements of the 4 Ps 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: Sample Design: Type of the Universe Sampling Type Sampling Unit (Geographical) Sample Size Customers Dealers DATA COLLECTION SOURCES: Primary Methods (Survey) Customers Dealers Secondary Methods Business Magazines Newspapers Internet Reference Books Libraries Structured Questionnaire (close-ended) Questionnaire (open-ended & close-ended) Interview Method (Unstructured) Approximately 100 customers Approximately 25 dealers Finite Universe Random Sampling (Both dealers & customers) Ahmedabad city Descriptive Design

AREAS TO BE COVERED:

Sabarmati Shahibaug Paldi Navrangpura LIMITATIONS :

Vasna Vastrapur Satellite Memnagar/Gurukul

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 VALUES

1. 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. Teamwork 10. 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 in quality, cost and customer service. through continuous improvement

We shall strive for excellence by nurturing, developing and empowering our employees and suppliers. We shall encourage an open atmosphere, conducive to learning and teamwork.

L.G. ELECTRONICS HISTORY BY YEAR YEAR 1947 1948 1952 1953 1954 1956 EVENTS Established Lak Hui Chemical Industry (currently LG Chemical Ltd.) Jan. Founded Cosmetics lab - April Started to produce the first plastic daily necessities in Korea - August Lak Hui Chemical Industry completed construction of the plant in Bujeon -Oct. Established Lak Hui Industry (currently LG International Co.). Jan. Lak Hui Chemical Industry completed construction of plant in Yangjeong -Oct. Lak Hui Chemical Industry developed. - Oct. 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 1958 1959 1960 Corp.) - June Established Goldstar Co., Ltd. (currently LG Electronics Inc.) Oct. Goldstar Co.Ltd. developed the first radio in Korea. - Jan. 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. 1961 1962 April Goldstar Co., Ltd. developed the first telephone in Korea. - July 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 1963 1964 Goldstar Co.Ltd. exported radio for the first time in Korea Jan Lak Hui Vinyl Industry completed construction of the plant in Dongnae.- August Goldstar Co. Ltd. completed construction of the plant in Oncheon. - Oct. 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 1965 Korea.- Jan. Goldstar Co.Ltd. developed the first refrigerator in Korea. - April Bando Corp. Established the overseas branch office in Tokyo, Japan - June 1966 Goldstar Co., Ltd. opened the vocational training center. Oct. 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 1967 Goldstar Co., Ltd. merged Korea Cable Industry. - Sept. Established Honam Petroleum Refinery Co. Ltd (currently LG-Caltex Oil Corp.)May Goldstar Co., Ltd. introduced the system of operation division - June 1968 Lak Hui Oil and Fat Industry developed the first shampoo in Korea - July 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 1969 Established Yonam Library and donated it to Jinju. Jan. 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. 1970 Lak Hui Chemical Industry initiated public stock offering. - Oct. 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 1971 Established Goldstar Electric Feb. Goldstar Telecommunication completed construction of the plant in Anyang-si. - March Acquired Korea Mining & Smelting Corp.(KMSC) (currently LG-Nikko Copper Inc.) - June 1973 Acquired Pusan Munhwa TV Broadcasting Oct 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.) 1974 -June 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. 1975 Goldstar Electric completed construction of the plant in Osan-si. Feb. 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. 1976 Goldstar Co., Ltd. established the Central R&D Institute. - Feb. 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. 1977 Lucky began to produce PVC resin. Jan. 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 1978 Lucky began to produce the first glass fiber in Korea. Jan 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 its 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 1979 dollars. - Feb. 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. 1980 Goldstar Instrument & Electric established the on-site joint plant in Thai. - Feb. 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 1981 color TV to Thai. - Sept. 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

1982

Lucky achieved exports to the amount of one hundred million dollars. Feb. 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. 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. 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

1983

1984

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. 1985 Goldstar Co., Ltd. developed the first multiplex sound color TV in Korea. - Oct. 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 LuckyGoldstar 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. 1986 Lucky Engineering developed the first 1M bit MOS ROM in Korea. - Jan. 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 Da1987 dong).-Feb. 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.

1988

Goldstar Co.Ltd. developed first single unit camera VHS MOVIE in Korea.-Feb 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 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. 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.

1989

1990

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 1991 League. (currently LG Cheetahs Football Team) -Jan. 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 1992 exports on Annual Trade Day. -Jan. 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. 1993 Goldstar Information and Communication developed switch. - Jan. 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 systemApril 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 1994 Bridge.-Oct. 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. 1995 Established Korea Home Shopping (currently LG Home Shopping Inc.) -Feb. 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. 1996 Established LG Sangnam Press Foundation -Jan. 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. 1997 LG Chemical Ltd. acquired Hindustan Polymer Company .-Jan. 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. 1998 Established Yonam Evergreen Foundation -Feb. 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. 1999 Established LG LCD Co. Ltd. -Feb. 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. 2000 LG Insurance was separated from LG. Jan. 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 2001 Mokpo. -Dec. 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 2003 Liquidated Dacom Satellite Multimedia System. -May 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 Established Corporate Office LG Electronics Inc. October 1, 1958 (As a private Company) LG Twin Towers 20,Yoido-dong, Youngdungpogu Seoul, Korea 150-721 Tel: 82-2-3777-1114 URL: http://www.LGE.com Mr. S.S.Kim Digital Display & Media Company Digital TV, PDP, Monitor, CD-ROM Drives, DVDROM Drives, CD Rewritable Recorder, VCR, DVD Player, Audio, Security System, Recording Media, Video Phone, PC Camera, Banking Automatic System , PCB

Chairman & CEO Business Area and Main Product

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. 51,300 (25,700 in Korea/ 25,600 overseas)

Number of Employees

Financial Highlights (in billion won) SALES Domestic Export Ordinary Ordinary 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 1997 9,239.7 3,503.2 5,736.5 115.9 1998 9,852.8 2,569.8 7,283.0 167.1 1999 2000 2001 2002 10,546.1 14,835.7 16,601.0 18,60 2.9 2,704.0 4,881.2 6,084.1 6,654 .9 7,842.1 9,954.5 10,516.9 11,94 8.0 2,587.9 728.5 573.7 675.2

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. 3.

Hatching new ideas is how we give the customer greater value. A corporation's core values are mirrored in its business performance. Innovation, Openness, and Partnership are the new core values we have recently set ourselves. Innovation: Openness: Creating new and unique values 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 1957: 1969: 1976: 1986: 1987: 1988: 1989:

EVENT Purchase of equity stake in Brazilian appliance company, Multibras, renamed as Bras temp in 1972. Entry into Canada through a majority stake in Inglis which became a fully owned subsidiary in 1990 Purchase of stakes in Brazilian Companies, Consul and Embraco Purchase of Fiat's Aspera (compressors) division. Formation of joint venture with the TVS group in India. Formation of joint venture with Vitromatic of Mexico. 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 JointVenture with the TVS group in India. Expansion of business in China with majority of ownership in Jointventures. 1999: Introduction of Catalyst TM Cleaning Action a laundry innovation that promises Americas 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 $ 420, or $6.07 per share on a diluted basis non-recurring items* Earnings operations from continuing $262

Net earnings (loss)

($394), or ($5.68) per share on a diluted basis

Shares outstanding (in 000's at 68,226 12/31/02) Number 12/31/02) of employees (at 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: Passion: Performance: in our work and each other for creating unmatched customer loyalty for our brands 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 business with honor, fairness, and respect for the individual and the public at large . . . ever mindful that there is no right way to do a wrong 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 : Harish Kumar & associates: Public: 55% 26% 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. Its a brand that provides functionality and performance over time. Kelvinator is one the worlds 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