LG Electronics Considers India IPO to Reach $75 Billion Revenue Goal by 2030

LG Electronics Inc. is evaluating the possibility of launching an initial public offering (IPO) for its Indian subsidiary, as part of its long-term strategy to increase annual revenue to $75 billion by 2030. With India’s stock market experiencing rapid growth, the South Korean company sees an opportunity to leverage this momentum in order to reinvigorate its consumer electronics division, which has been a core pillar of its business for decades. This marks the first time LG has openly discussed its potential entry into the Indian stock market, amid ongoing market speculation.

William Cho, LG Electronics’ Chief Executive Officer, who took charge in 2021 after over 30 years with the company, has set an ambitious goal to grow the company’s electronics business to 100 trillion won ($75 billion) annually by the end of the decade. This would represent a significant increase from the current overall revenue of approximately $65 billion in 2023. Part of the company’s growth strategy involves enhancing its enterprise sales, with a target to increase the proportion of revenue from business clients to 45% by 2030, compared to the current 35%.

"We are considering many strategic options, and an Indian IPO is certainly one of them," Cho stated in an interview with Bloomberg Television. "However, no definitive decision has been made yet, although there is heightened interest from global investors."

India has become a crucial growth market for LG, and the company’s performance in the region has been notably strong. In the first half of 2024, LG’s Indian operations posted a 14% increase in revenue, reaching a record 2.87 trillion won. Meanwhile, net income surged 27% to 198.2 billion won. A potential IPO would align with India’s booming capital markets, where over 200 companies went public in the past year, collectively raising $7.1 billion. With local investor interest on the rise, LG would follow other South Korean companies, such as Hyundai Motor Co., which is preparing for an IPO in India.

While LG has not yet provided specific details regarding the valuation of its Indian unit, the company is closely monitoring developments in the Indian stock market and analyzing industry trends to make informed decisions.

As part of its overall growth strategy, LG is placing emphasis on expanding into new business sectors with significant revenue potential. One such area is the heating, ventilation, and air conditioning (HVAC) industry. LG operates 11 global production sites focused on HVAC products, including industrial chillers — large-scale air conditioners increasingly used in artificial intelligence (AI) data centers. This market has seen robust growth, with LG’s sales of chillers expanding by an average of 40% annually over the past three years.

Another key focus area for LG is the expansion of its subscription-based services for home appliances. In South Korea, LG offers customers the option to rent appliances such as washing machines and laptops for periods ranging from three to six years, in exchange for a monthly subscription fee. This model has gained traction, with 35% of consumers now choosing to subscribe to LG’s offerings. The company recently introduced similar services in Malaysia and has plans to expand its subscription model to Thailand, Taiwan, and India in 2024. LG is also exploring opportunities to launch this service in the US and European markets. By 2024, LG expects its subscription business to grow by 60%, generating approximately $1.3 billion in revenue.

In addition to these initiatives, LG is investing heavily in its webOS-based advertising and content business. The company plans to allocate 1 trillion won by 2027 to further develop its free ad-supported streaming service, aiming to capture a larger share of the rapidly growing digital content market.

Cho’s leadership has been instrumental in steering LG’s global expansion efforts. Having spent a significant portion of his career in international markets, including North America, Germany, and Australia, Cho brings a wealth of experience in understanding customer needs and driving innovation across various business models.

As LG Electronics looks toward the future, the possibility of an India IPO, combined with the company’s diversification into new revenue streams, underscores its commitment to sustaining growth and adapting to the evolving demands of the global market.

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