LG India expects 10% growth in FY 24

25 May 2023 , 09:34 AM

According to LG Electronics India’s Managing Director Hong Ju Jeon, the company anticipates around 10% growth in FY24 and is looking into new market segments including healthcare and water purification in addition to increasing its investments in its production environment. 

India is a significant market for the South Korean chaebol, which sees ‘big potential’ in the country because of its strong economic status relative to other international markets and its expanding population, which is made up of more young people.

In an interview with PTI, Jeon stated that the company is aiming to increase the domestic value addition of products created in India and has even invited its sister companies from South Korea to establish units for component production here.

It also hopes to enhance exports from India to other nations by improving cost competitiveness and expanding its product options.

‘We will support the make-in-India initiatives of the Indian government, increase exports from here, and support the Indian economy,’ declared Jeon.

Jeon also praised India’s economic narrative this year, noting that its economy is expanding despite other economies struggling due to the interruption of war and other events on a global scale.

He responded, ‘LG also has the same expectation,’ when questioned about the growth prospects for the LG business in India. Even in comparison to the rest of the year, business in other nations will decline, but we (LG Electronics India) will expand.

LG Electronics anticipates double-digit growth, outpacing GDP figures.

Jeon predicted that we would expand by 10% and increase our market share, noting that the rise would be secular and originate from all product categories.

Additionally, the business is looking into new potential in sectors including healthcare and water purification. For hospitals and healthcare facilities, it offers a product package through LG Healthcare Solutions.

The second-largest market in the world for LG Electronics is India, where the South Korean conglomerate plans to keep up its growth momentum.

A fully owned subsidiary of LG Electronics, headquartered in South Korea, is LG Electronics India. In India, it is a powerful brand with operations in a number of industries, including HVAC, consumer electronics, home appliances, and IT hardware.

He said, ‘Our internal management (LG Global) is very interested in the India market.’ ‘The population of India is growing with a high number of young population,’ he stated.

Additionally, it is developing products with a focus on India, including those in the air-conditioning market.

Jeon stated that although LG Electronics India’s export is currently in the low single digits, it would increase. In order to increase exports, more localization and products are needed.

He did note, though, that LG Electronics operates facilities all around the world that are in direct competition with one another. India-made goods’ cost-competitiveness would need to be improved in order to expand exports.

This may also be advantageous to Indian consumers.

Concerning the sourcing of components, Jeon noted that India has a high localization rate but said that the sector still requires greater help from the Indian government.

We have encouraged our sister enterprises to participate in the Production Linked Incentive programme (PLI) programme proposed by the Indian government, according to Jeon. Companies who served as our subcontractors in Korea are now coming to provide us locally.

LG Electronic India’s profit after tax for the fiscal year that ended on March 31, 2022, was Rs 1,174.7 crore, while its total revenue was Rs 17,171.3 crore. Exports during the FY.

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