LG Electronics Considers India IPO to Drive $75 Billion Revenue Target

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LG Electronics Inc. is exploring an initial public offering (IPO) for its India business, aiming to capitalize on a robust stock market to achieve its ambitious goal of $75 billion in electronics revenue by 2030. Chief Executive Officer William Cho revealed that an Indian market debut is one of several strategies under consideration to rejuvenate the company’s longstanding consumer electronics segment. This marks the first public acknowledgment by the South Korean firm, which competes directly with industry giant Samsung Electronics Co., regarding a potential Indian IPO—a topic of ongoing speculation in the market and media. 

William Cho, who became CEO in 2021 after a 30-year tenure with LG Group, has set a target to expand the electronics division’s annual revenue to 100 trillion won ($75 billion) by 2030, compared to the company’s overall revenue of approximately $65 billion in 2023. A key component of this strategy includes increasing revenue from enterprise clients, aiming for 45% of sales from business-to-business transactions by the decade’s end, up from the current 35%. 

In an interview with Bloomberg Television, Cho stated, “It is one of many options we can consider,” referencing the potential IPO in India. He noted growing interest among global investors but emphasized that no decision has been finalized. LG’s Indian unit has seen significant growth, with revenue rising 14% to a record 2.87 trillion won in the first half of 2023, while net income increased 27% to 198.2 billion won. 

An IPO would coincide with a surge in India’s capital markets, where 189 companies are expected to raise $5.6 billion this year. Cho confirmed that LG is closely monitoring the Indian IPO landscape but has not yet determined a valuation for its Indian unit. 

Beyond the IPO, Cho plans to expand LG’s presence in new business areas, including heating, ventilation, and air-conditioning (HVAC) systems, and subscription services for home appliances. LG’s overseas sales of HVAC systems, particularly chillers for AI data centers, have grown 40% annually over the past three years. The company also plans to grow its subscription business, with an expected revenue increase of 60% to $1.3 billion by 2024. Additionally, LG will invest 1 trillion won by 2027 to enhance its webOS-based advertising and content business. 

Cho, who has extensive international experience, emphasized the importance of understanding customers and creating new business models, having spent half of his career outside Korea in regions such as North America, Germany, and Australia. 

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