LG on a production scale, Boost B2B and leading premiumation in India, indicates management

LG Electronics should evolve production, expand its B2B activities and lead the mainstream electronics premium in India, according to the management of the company.

The company deploys a third manufacturing plant in Sri City, Andhra Pradesh, and introduces new products in level 2 and level 3 cities, while strengthening its B2B portfolio, which includes HVAC systems, information display panels and electronic tables.

The long -awaited Introduction on the Electronics giant opened its doors on October 6, the company planning to raise 11,607 crores ₹ through a sales offer. The price strip was set between 1,080 ₹ and 1,140 ₹ per share, which implies a market capitalization of around 8.7 billion dollars, or around 77,000 crores, at the upper end.

Addressing CNBC-TV18, Sanjay Chitkara, sales director of LG Electronics India, said that the IPO calendar had been strategically chosen. “Diwali is a very important season; it is great for our industry, the feeling of consumers is high and our sale is very good. I think it is the right time for this IPO,” he said. He added that the emphasis remains firmly on the growth and reinvestment of the Indian subsidiary on the market, rather than the rest of the parent company.

Chitkara highlighted LG’s expansion plans, noting that the construction of the new Andhra Pradesh plant has already started. “Our plan is that by the end of next year, near Diwali, we start production on our first line. There will be an investment in phase, and by 2029, we will finish the project. In particular, this plant is much larger than our two existing plants-largely three times greater,” he said.

On the price of the IPO, ATUL KHANNA, Head of Accounting, said that the offer was “at an optimal price in terms of market feeling and bankers’ advice”. He explained that the price band leaves room for investors while reflecting the fundamental solids of the company.

LG management is confident to maintain robust growth in India. Chitkara said that the consumer electronics market excluding mobile phones is currently estimated at $ 41 billion and increases TCAC by 14%. He added that prejudice is accelerating, with premium products currently representing around 17% of the market, which should reach 25 to 27%. Penetration levels for household appliances such as microwaves, air conditioners and washing machines remain low compared to the main global markets, with significant expansion opportunities.

Khanna said LG also focuses on location to improve margins.

“We obtain almost 54% of components and subsets internally. Our key objective is to produce key components-the heart of the product-in our factories,” he said, noting that the company aims to continue to go beyond the performance of past margins.

This Diwali, although consumers can try to upgrade their homes with household appliances and electronics, investors will also have the possibility of participating in the next LG growth phase in India. The company’s strategy combines the expansion of production, a push in premium products and strengthen its B2B activities, signaling a new chapter for LG in the country.

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