LG India lists in USD $1.31 billion debut, unveils growth plan

LG Electronics has announced the successful listing of its subsidiary, LG Electronics India Limited, on the National Stock Exchange of India.

Market listing details

The company offered 15 percent of LG Electronics India Limited's issued shares, amounting to 101,815,859 shares, through an offer for sale. The shares were priced at INR 1,140 each, the highest point of the indicative range, and attracted subscriptions totalling 54 times the actual offering. Proceeds from the listing reached USD $1.31 billion, or INR 116.05 billion.

This listing marks a significant step for LG in reinforcing the position of its Indian subsidiary within the market and outlines its strategic direction for future engagement in the country. The event was attended by senior management, including LG Electronics Chief Executive Officer William Cho, Chief Financial Officer Chang-tae Kim, LG Electronics India Limited Managing Director Hong-ju Jeon, Board Chairman Dae-hyun Song, and Ashish Chauhan, Chief Executive Officer of the National Stock Exchange of India.

Company strategy and market outlook

The listing supports LG's stated ambition to become more deeply rooted in India. The company aims to strengthen its presence in a market characterised by rising incomes and a growing middle class, contributing to robust demand for appliances. Referencing a Boston Consulting Group forecast, LG highlighted the significant expansion expected in India's middle-income segment, anticipated to increase from 29 percent in 2020 to 46 percent by 2030 for households earning USD $6,000 to $36,000 annually.

In a statement, William Cho, Chief Executive Officer of LG Electronics, said:

"India is now at the centre of our Global South strategy. We look forward to advancing the growth of both LG and LGEIL."

Three-part vision

With the debut on the National Stock Exchange, LG also announced its future vision centred on three main initiatives: "Make for India", "Make in India", and "Make India Global". These are designed to deepen LG's integration in the country through initiatives focusing on local product development, manufacturing capability expansion, and positioning India as a base for global growth.

The "Make for India" initiative focuses on tailoring products to Indian consumers' lifestyles and needs. LG stated that it intends to continue expanding its portfolio of affordable products that feature India-specific configurations and design elements drawing on local preferences and insights.

The "Make in India" initiative underscores the company's commitment to supporting India's goal of strengthening its manufacturing sector. LG has developed a self-sufficient value chain locally, covering research and development, production, marketing, and service. The company operates manufacturing plants in Noida and Pune, with further plans to invest INR 50.01 billion in a new Sri City factory. This facility is expected to create approximately 1,900 jobs, both directly and indirectly.

The "Make India Global" initiative seeks to leverage India's growing capabilities in research, development and manufacturing by using the country as a strategic hub for LG's Global South markets. With this initiative, LG aims to assist India's development as a globally recognised centre for technology, manufacturing, and talent, presenting opportunities for technology exports and supporting sustainable growth.

Local commitment and business expansion

LG Electronics India Limited continues to invest in customer engagement by expanding after-sales services and its Annual Maintenance Contract subscription programmes. Beyond consumer electronics and appliances, the company is also building its presence in B2B domains, delivering commercial technologies in fields such as information displays and building climate systems.

LG's longer-term strategy is to cement its role as a participant in India's ongoing economic advancement. The company is aiming to develop local industry capability, strengthen value chains, and support the country's ambitions to emerge as a centre of innovation, manufacturing and technological talent. According to LG, the goal is "to grow alongside India, supporting its rise as a global economic leader while reinforcing its own standing as a trusted national company that represents India's potential to the world."