LG Electronics eyes India IPO as it targets $75 Billion revenue by 2030

While Cho did not specify how much the company was looking to raise in India, a combination of a buoyant consumer market as well as a strong stock market are among reasons for the consumer durables firm’s proposed plan to consider a capital market debut, experts said of LG's IPO plan.

But LG India has delivered 11-18% topline growth over the last two years, RoC data shows, even as rivals such as Whirlpool of India has seen flattish growth during the period. (Image Credits: LG Electronics)

South Korean major LG Electronics, amongst the largest consumer durable makers in the world, is considering an initial public offering (IPO) in India, its second-largest market after the US.

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On Tuesday, LG Electronics CEO Officer William Cho said that an IPO debut in India was one of several options it was weighing to help the firm reach an overall $75 billion revenue by 2030, in an interview to Bloomberg.

“We have been watching carefully what’s going on in the Indian market in terms of IPOs and following similar industry and similar IPO cases,” Cho said. LG hasn’t yet calculated possible valuations for its Indian unit, he said.

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LG’s plan will be the second such after another South Korean major Hyundai Motor Company has decided to tap the capital markets in India. The country’s second-largest passenger vehicle maker is looking to raise $2.5-3 billion (around Rs 25,000 crore), according to its draft red herring prospectus filed in June, valuing the company at $18 billion (Rs 1.5 trillion).

In India, LG Electronics, where it has been operational for nearly three decades and is a household name in home appliances, saw sales cross Rs 20,000 crore in FY23, with net profit at Rs 1,345 crore, according to Registrar of Companies (RoC) data sourced from PrivateCircle Research, a market intelligence platform. FY24 numbers have not been updated yet on RoC by the company.

But LG India has delivered 11-18% topline growth over the last two years, RoC data shows, even as rivals such as Whirlpool of India has seen flattish growth during the period. Samsung derives over 70% of its India business from mobile phones, while around 30% comes from consumer durables, experts tracking the market said.

Players such as Voltas, best known for its air conditioners, closed FY24 with sales of Rs 12,734 crore, a year-on-year growth of 32%. Net profit rose 82% year-on-year to Rs 236 crore. But the company derives around 35% of its revenue from segments such as engineering products and projects, while cooling products including air conditioners gives the firm 65% of its revenue.