LG Electronics Considering India IPO to Pursue $75 Billion Revenue Target

LG Electronics Inc. is considering an initial public offering (IPO) for its India business as part of a broader strategy to achieve $75 billion in electronics revenue by 2030. This move, if confirmed, would mark a significant milestone for the South Korean tech giant as it seeks to expand its footprint in one of the world’s most dynamic markets.

Strategic Considerations for India IPO

LG Electronics’ Chief Executive Officer, William Cho, revealed that the company is weighing several options to revitalize its decades-old consumer electronics business, with an Indian IPO being one of the key considerations. This is the first time LG has publicly acknowledged the possibility of an Indian market debut, amid growing speculation and investor interest. 

Cho, who took the helm in 2021, has set an ambitious goal of reaching 100 trillion won ($75 billion) in annual revenue by 2030, up from $65 billion in 2023. A significant portion of this growth is expected to come from enterprise clients, with the company aiming to increase its B2B sales from 35% to 45% by the end of the decade. LG’s Indian operations have shown robust growth, with revenue rising 14% to a record 2.87 trillion won in the first half of 2024, and net income climbing 27% to 198.2 billion won.

Expanding Business Ventures and Global Presence

Beyond the potential IPO, LG Electronics is focused on nurturing new business areas that can each generate over 1 trillion won in annual revenue. Among these is the heating, ventilation, and air-conditioning (HVAC) sector, where LG has seen substantial growth in global sales, particularly in chillers for AI data centers. Additionally, LG is expanding its subscription services for home appliances, a model that has gained traction in Korea with 35% of consumers opting for monthly rentals. The company is rolling out this subscription model to markets in Malaysia, Thailand, Taiwan, and India, with plans to extend it to the US and Europe in the near future. LG expects its subscription revenue to grow by 60%, reaching approximately $1.3 billion in 2024.

Conclusion: LG Electronics’ potential IPO in India underscores the company’s commitment to expanding its global presence and achieving its ambitious revenue goals by 2030. With strategic initiatives in place across various business sectors, LG is well-positioned to capitalize on emerging opportunities in both consumer and enterprise markets.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.