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India to see LG's highest sales growth globally this year: MD Hong Ju Jeon

LG India will boost localisation of its products by increasing the use of locally produced components from 50% to 70%

LG Electronics

BS Web Team New Delhi

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LG Electronics expects its sales growth in India to be the highest among all markets this calendar year, an Economic Times (ET) report said.

This sale is driven by a recovery in spending in the second half of the year and the festive season, LG Electronics India Managing Director (MD) Hong Ju Jeon told ET.

The company will soon enter new markets, such as streaming services for Indian films and music, which will be bundled with its televisions, he said.

According to Jeon, the country's largest television, air conditioner, and washing machine manufacturer by value has also told the government to make exports of electronic products competitive from India through trade agreements with other countries so that LG India can compete against other subsidiaries in Thailand, Indonesia and Vietnam in global supplies.

The company will also boost localisation of its products by increasing the use of locally produced components from 50 per cent to 70 per cent and attempting to attract global suppliers from Korea, said Jeon.

It will also look into local manufacturing of audio and display products for commercial use. LG India currently manufactures 90 per cent of what it sells in India.

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LG India to enter new businesses

LG India will soon enter new businesses such as streaming services of Indian movies and music to be bundled with its televisions through partnerships with production houses, as well as launch energy products such as electric vehicle chargers, healthcare equipment, and a refreshed entry-level home appliance portfolio, said Jeon.

He anticipates that these will drive sales in India to $3 billion (over Rs 24,600 crore) in three years.

In 2022, LG India reported sales of $2.3 billion (approximately Rs 18,400 crore), up 17 per cent year-on-year (YoY).

Jeon, who took over as head of Indian operations in January of this year, stated that India is the only major country expected to grow its GDP this year.

India is the second largest market for LG after the USA.

Jeon stated that he recently met with Union Minister of Commerce and Industry Piyush Goyal to discuss ways to make Indian electronic exports more competitive by lowering or eliminating duty barriers through trade agreements.

“We lose out to other subsidiaries on rates due to duties in India. Most countries talk about exports and local production which are like slogans, but in India the government means real business,” he said.

LG will also strengthen the entry-level product segment in India, which has received little attention in the last three to four years. As part of this, it is developing a low-cost air conditioner that will only have the basic cooling function and will be sold in India.

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First Published: Jun 30 2023 | 12:45 PM IST

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