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About LG electronics
LG Electronics India, established in 1997, is a subsidiary of South Korean multinational LG Corporation. The company manufactures and distributes home appliances and consumer electronics in India, offering products such as refrigerators, washing machines, air conditioners, televisions, and microwave ovens. It operates across two business segments: Home Appliances and Air Solutions, and Home Entertainment.
The company has two manufacturing facilities located in Noida and Pune, with local manufacturing accounting for approximately 97–98% of its product output. Its distribution and service network includes 25 warehouses (comprising central and regional distribution centres), 949 service centres, and 12,590 service engineers. LG Electronics India is supported by 31,291 sub-dealers and had over 36,000 B2C touchpoints as of June 30, 2024.
Serving both B2C and B2B customers in India and international markets, the company’s business is backed by a network of 472 B2B trade partners. LG Electronics India benefits from its parent company’s global supply chain, R&D, and brand recognition while maintaining a strong local presence. Its operations are aimed at providing installation, repair, and maintenance services, along with sales, through a wide-reaching service infrastructure.
Financials of LG electronics
About the industry
India’s home appliances and consumer electronics market has grown at approximately 7% over the past five years and is expected to accelerate to around 12% annually over the next five years, driven by rising disposable incomes, growing urbanization, and increasing penetration of appliances and electronics in both urban and rural areas. The industry sees intense competition among global and domestic players including Samsung, Sony, Haier, Whirlpool, Philips, Havells, Voltas, Godrej, and Blue Star. LG Electronics India holds the second position in the overall market after Samsung India Electronics (₹99,542 Cr revenue), followed by Havells India and Godrej & Boyce at third and fourth positions respectively. However, LG maintains market leadership in major home appliances and consumer electronics (excluding mobile phones) by volume and has been the number one player for 13 consecutive years (2011-2023) in terms of value market share in the offline channel, which represents approximately 80% of the market. The industry is experiencing a shift towards premium, energy-efficient products, with growth being further fueled by the expansion of organized retail and e-commerce channels, making appliances more accessible and affordable to consumers across India.
Strengths
- Strong global backing from LG Electronics, leveraging global resources and technology
- Market leader position with #1 ranking for 13 consecutive years in major appliances
- Comprehensive pan-India distribution and after-sales service network
- High brand loyalty driven by quality products and strong customer satisfaction
- “G-local” strategy ensuring products are adapted to local preferences
- Strong manufacturing capabilities with 97-98% local production
- Capital-efficient business model with consistent profitability
- Industry pioneer – first to launch inverter air conditioners in India (2014)
Risks
- Intense competition from Samsung, Sony, Haier, and emerging retail chain brands
- Heavy dependence on parent company LG Electronics for business support
- Manufacturing dependency on Noida and Pune facilities
- Potential intellectual property disputes and legal challenges
- Supply chain disruptions from natural disasters or global crises
- Market saturation in urban areas limiting growth potential
- Need for constant innovation due to rapid technological changes
- Currency volatility and regulatory changes impacting operations