LG Electronics' Indian subsidiary has achieved record sales, driven by a localization rate of 55% in parts. The company is looking to further expand with the construction of a third factory and an increase in exports to 22 countries in Asia and the Middle East.
On August 3, LG Electronics India submitted its business report for the 2026 fiscal year (April 2025 to March 2026) to the National Stock Exchange of India (NSE), reporting total annual revenue of 246.04 billion rupees (approximately $3.7 billion). This marks the highest performance since the company entered India in 1997. Over the past five years, the compound annual growth rate (CAGR) has been 9.75%, surpassing the domestic growth rate of 9%.
The localization rate for key components, such as compressors and motors, has increased to 55.2%. This improvement in quality control, production speed, and price competitiveness has solidified the market dominance of locally produced electronics in India.
The home appliance sector accounted for 73.8% of total sales (approximately 272.22 billion rupees), driving growth. The Pune factory is the only local manufacturer producing large-capacity side-by-side refrigerators in the 600-700 liter range, catering to premium demand, while specialized appliances designed for voltage instability and low water pressure have strengthened its market position. LG's OLED TVs hold over 60% market share in India.
As the company grows, it faces challenges related to rising global raw material prices and a weakening rupee, which have increased cost pressures. Consequently, net profit (PAT) fell to 16.85 billion rupees (approximately $252.9 million), a 23.5% decrease compared to the previous year.
LG Electronics plans to enhance profitability through the early completion of its third factory and increased exports to neighboring countries. A significant portion of the 180 billion rupees raised from its listing on the Indian stock market last year will be invested in expanding the Sri City factory in Andhra Pradesh. This will be LG's third production base in India, following Noida and Pune, with a total project cost of 90 billion rupees. The completion target has been moved up from next year to this year, with trial operations set to begin soon. The company aims to significantly reduce logistics costs by establishing a foothold in southern India.
The 'Make in India Global' strategy to expand the overseas market for Indian-made electronics is also gaining momentum. The 'LG Essential' series, launched in India last November, will lead this initiative. The essential lineup, which includes air conditioners, refrigerators, washing machines, and ovens, is set to be rolled out in 22 countries, including Indonesia, Saudi Arabia, Vietnam, and Egypt, by the end of this year.
Song Dae-hyun, Chairman of LG Electronics India, stated in the report, "The record performance in our first year of listing is a result of the explosive growth of the Indian consumer market combined with our solid business framework. We will strengthen our product and logistics competitiveness to achieve sustainable growth in line with India's rapid premiumization trend."
* This article has been translated by AI.
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