India at centre of LG Electronics' Global South strategy: CEO William Cho

LG Electronics India debuts on NSE with 48% surge, advancing Make in India, R&D growth, and a new chapter in the global south strategy

India is now at the centre of LG Electronics’ Global South Strategy, company’s chief executive officer (CEO) William Cho said on Tuesday after the company listed on the National Stock Exchange (NSE). “We look forward to advancing the growth of both LG and LGEIL (LG Electronics India Ltd.),” he added.

 

LGEIL listed on the NSE at a 50 per cent premium, and ended Tuesday’s trading session 48 per cent up from the issue price of ₹1,140 apiece.

 

Apart from Cho, LG Electronics’ Chief Financial Officer (CFO) Chang-tae Kim, Board Chairman and Non-Executive Director Dae-hyun Song, and LGEIL managing director (MD) Hong-ju Jeon were present at the listing in Mumbai.

 

“We expect India to sustain an annual gross domestic product (GDP) growth rate of 6.5-7 per cent through 2030. With a rise in disposable income, and a young talented population, India’s consumer goods market is expanding rapidly as the Global South Centre,” Cho said.

 

After the listing, Cho said in his speech: “Today, we turn the page to a new chapter in our journey, one that affirmed our commitment to India with strong intent to deepen our roots in this dynamic country... This initial public offering (IPO) marks the beginning of a new chapter for LG.”

 

LG Electronics' journey in India started in 1997, and Cho said that the country was then an uncharted territory and a new market full of untapped potential.

 

He also said that the company has shaped the home appliance and consumer electronics market, adding that it holds the number one market share across all product categories with pride.

 

“Over the next five years, we will expand our investment to accelerate future technologies. From artificial intelligence (AI) and data science to advanced security and system of chip. (We are) building this foundation at our Bengaluru research and development (R&D) hub, which will become the heart of LG’s innovation, where brilliant minds come together to create breakthrough technologies for a better life. At LG Electronics, we have witnessed India's inspiring rise as a global force, and its transformation into a hub of innovation and creativity,” he said.

 

Cho further said that the company stands firmly behind the Indian government’s “Make in India” initiative, adding that its third plant in Sri City in Andhra Pradesh is a significant milestone towards building a self-sufficient and fully integrated supply chain in the country. LGEIL also has one plant each in Noida and Pune.

 

“This plant will boost local production, and support the electronics manufacturing ecosystem in Andhra Pradesh, and generate close to 2,000 direct and indirect jobs by the end of 2026 India,” he added.

 

LGEIL’s plants in Pune and Noida are already export hubs for West Asia, Africa, and Asia. Cho said that its Sri City plant will empower the local industry value chain in enhancing capabilities across sectors, and contribute to India’s long-term competitiveness globally.

 

Cho ended his speech, saying: “For LG Electronics, India is not just another market. We are here as your true partner, with strong ambition to grow together through a shared vision of Make for India, and Make in India. Ultimately, the ambition is to make India global.” 

LGEIL on Tuesday also unveiled the LG Essential Series, a new line of home appliances created from the ground level with Indian insights, it said in a release. This line of appliances which include a fully automatic top load washing machine, room air conditioners, double door refrigerator, and convertible oven will see its nationwide rollout in November with a starting price tag of ₹18,000 for entry-level models.