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An IPO is one of several strategies that LG is considering to drive its growth in India. Beyond the IPO, Cho is also focusing on nurturing new business areas that could each generate over 1 trillion Korean Won in annual revenue read more
 "LG Electronics planning an IPO in India as it hopes to hit $75 bn in revenue by 2030")
LG is also expanding its subscription services for home appliances. In Korea, consumers can rent products like washing machines and laptops for a monthly fee, with about 35 per cent of customers now opting for these subscriptions. Image Credit: Reuters
LG Electronics Inc. is considering taking its India business public, a move that could support the company’s ambitious goal of reaching $75 billion in revenue by 2030. This potential initial public offering (IPO) marks the first time the South Korean tech giant has openly discussed entering the Indian stock market, amid ongoing speculation and interest from investors.
CEO William Cho, who took the helm in 2021 after more than three decades with LG, has set a clear target: to expand the company’s electronics revenue to 100 trillion Korean Won (approximately $75 billion) by 2030, up from about $65 billion in 2023. A key part of this strategy involves increasing revenue from enterprise clients, with an aim to have 45 per cent of sales coming from this segment by the end of the decade, up from the current 35 per cent.
An Indian IPO is one of several strategies being considered to drive this growth. India, with its rapidly expanding economy and thriving capital markets, presents a promising opportunity for LG. The company’s Indian unit has shown strong performance, with revenue rising 14 per cent to a record 2.87 trillion Korean Won in the first half of this year, and net income increasing by 27 per cent to 198.2 billion Korean Won.
The timing of an IPO would align with a broader boom in India’s capital markets. This year, around 189 companies are expected to go public, aiming to raise $5.6 billion. The strong domestic demand has encouraged companies like LG to explore the possibility of listings. In fact, LG’s competitor, Hyundai Motor Co., is reportedly preparing to raise up to $3.5 billion through an IPO in India.
While the decision to go public in India has not been finalized, LG is closely monitoring the market and similar industry IPOs. The company has not yet determined a valuation for its Indian unit, but the potential for growth in this market is evident.
Beyond the IPO, Cho is also focusing on nurturing new business areas that could each generate over 1 trillion Korean Won in annual revenue. One such area is the heating, ventilation, and air-conditioning (HVAC) sector, where LG has seen significant growth. The company’s chillers, which are large air conditioners for buildings, have become increasingly important for data centres driven by the rise of artificial intelligence. Over the past three years, overseas sales of LG’s chillers have grown at an average annual rate of 40 per cent.
Additionally, LG is expanding its subscription services for home appliances. In Korea, consumers can rent products like washing machines and laptops for a monthly fee, with about 35 per cent of customers now opting for these subscriptions. This model has already been introduced in Malaysia and will be rolled out to customers in Thailand, Taiwan, and India this year, with plans to potentially expand to the US and Europe. LG expects its subscription revenue to grow by 60 per cent in 2024, reaching around $1.3 billion.
As LG considers its options for the future, the possibility of an IPO in India could play a crucial role in achieving its long-term revenue goals while also strengthening its presence in one of the world’s most dynamic markets.
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English (US) ·