LG Electronics Considers India IPO to Boost Global Revenue Goals
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On Tue, 27 Aug, 8:01 AM UTC
6 Sources
6 Sources
[1]
LG Electronics weighs India IPO to chase $75 billion goal
LG Electronics Inc. is considering an initial public offering for its India business, tapping a booming stock market to help hit a target of $75 billion in electronics revenue by 2030. Chief Executive Officer William Cho said an Indian market debut is one of several options it's weighing to revitalize a decades-old consumer electronics business. It's the first time the South Korean company, which competes head-on with larger rival Samsung Electronics Co., has spoken publicly about an Indian debut, the subject of persistent market and media speculation. Cho -- who ascended to the top post in 2021 after more than three decades with the flagship of the family-owned LG Group -- has set a goal of growing the electronics business to an annual revenue of 100 trillion won ($75 billion) by 2030. That's versus overall company revenue of about $65 billion in 2023. It aims to get there in part by earning more from enterprise clients -- targeting about 45% of sales from other companies by the end of the decade, versus 35% now. "It is one of many options we can consider," Cho told Bloomberg Television. "I understand there's increased interest among global investors," he said, referring to a potential IPO in India. "As of now, nothing is confirmed." In India, LG seeks to sustain rapid growth. In the first six months of this year, revenue at LG's unit within the Asian country rose 14% to a record 2.87 trillion won, while net income climbed 27% to 198.2 billion won. Any IPO would coincide with a boom in India's capital markets. More than 200 companies went public in IPOs that raised $7.1 billion this year, making it one of the busiest markets in this space. At least 30 IPOs joined the pipeline as demand powered by domestic money pushes companies to explore listings. Korean peer Hyundai Motor Co. is preparing to raise as much as $3.5 billion in an Indian IPO, Bloomberg News reported last month. "We have been watching carefully what's going on in the Indian market in terms of IPOs and following similar industry and similar IPO cases," Cho said. LG hasn't yet calculated possible valuations for its Indian unit, he added. Cho, 61, plans to nurture new businesses that can each bring in more than 1 trillion won of annual revenue. Among them is heating, ventilation and air-conditioning, for which the company has 11 production sites globally. Chillers -- large air conditioners for buildings -- have become key for artificial intelligence data centers, which are sprouting up across the world as companies pursue generative AI. Over the past three years, overseas sales of LG's chillers have grown 40% annually, on average. LG is also expanding its subscription service for home appliances. In Korea, consumers can rent products such as washing machines and laptops ranging from three to six years by paying a monthly fee. In theory, that improves affordability and convenience: Some 35% of consumers are now opting for subscriptions, Cho said. The company recently began offering subscriptions in Malaysia and plans to roll that model out to customers in Thailand, Taiwan and India starting this year, and potentially the US and Europe in the future. LG expects revenue from the subscription business to grow 60% to about $1.3 billion in 2024. The company's also planning to expand its free ad-supported streaming services. Cho said LG will invest 1 trillion won by 2027 to grow its webOS-based advertising and content business. "Half of my career was spent outside Korea, and it is about understanding customers and creating new business models for them," said Cho, who has worked with LG in North America, Germany and Australia.
[2]
LG Electronics weighs India IPO to help chase $75 billion goal
LG Electronics Inc. is considering an initial public offering for its India business, tapping a booming stock market to help hit a target of $75 billion in electronics revenue by 2030. Chief Executive Officer William Cho said an Indian market debut is one of several options it's weighing to revitalize a decades-old consumer electronics business. It's the first time the South Korean company, which competes head-on with larger rival Samsung Electronics Co., has spoken publicly about an Indian debut, the subject of persistent market and media speculation. Cho -- who ascended to the top post in 2021 after more than three decades with the flagship of the family-owned LG Group -- has set a goal of growing the electronics business to an annual revenue of 100 trillion won ($75 billion) by 2030. That's versus overall company revenue of about $65 billion in 2023. It aims to get there in part by earning more from enterprise clients -- targeting about 45% of sales from other companies by the end of the decade, versus 35% now. "It is one of many options we can consider," Cho told Bloomberg Television. "I understand there's increased interest among global investors," he said, referring to a potential IPO in India. "As of now, nothing is confirmed." In India, LG seeks to sustain rapid growth. In the first six months of this year, revenue at LG's unit within the Asian country rose 14% to a record 2.87 trillion won, while net income climbed 27% to 198.2 billion won. Any IPO would coincide with a boom in India's capital markets. Some 189 companies aim to sell shares to raise $5.6 billion this year, making it one of the busiest markets in this space. At least 30 IPOs joined the pipeline as demand powered by domestic money pushes companies to explore listings. Korean peer Hyundai Motor Co. is preparing to raise as much as $3.5 billion in an Indian IPO, Bloomberg News reported this month. "We have been watching carefully what's going on in the Indian market in terms of IPOs and following similar industry and similar IPO cases," Cho said. LG hasn't yet calculated possible valuations for its Indian unit, he added. Cho, 61, plans to nurture new businesses that can each bring in more than 1 trillion won of annual revenue. Among them is heating, ventilation and air-conditioning, for which the company has 11 production sites globally. Chillers -- large air conditioners for buildings -- have become key for artificial intelligence data centers, which are sprouting up across the world as companies pursue generative AI. Over the past three years, overseas sales of LG's chillers have grown 40% annually, on average. LG is also expanding its subscription service for home appliances. In Korea, consumers can rent products such as washing machines and laptops ranging from three to six years by paying a monthly fee. In theory, that improves affordability and convenience: Some 35% of consumers are now opting for subscriptions, Cho said. The company recently began offering subscriptions in Malaysia and plans to roll that model out to customers in Thailand, Taiwan and India starting this year, and potentially the US and Europe in the future. LG expects revenue from the subscription business to grow 60% to about $1.3 billion in 2024. The company's also planning to expand its free ad-supported streaming services. Cho said LG will invest 1 trillion won by 2027 to grow its webOS-based advertising and content business. "Half of my career was spent outside Korea, and it is about understanding customers and creating new business models for them," said Cho, who has worked with LG in North America, Germany and Australia.
[3]
LG Electronics weighs India IPO to help chase $75 billion goal
LG Electronics Inc. explored an IPO for its Indian unit, aiming to meet a $75 billion revenue target by 2030. CEO William Cho mentioned it as a strategic option, noting a surge in investor interest. The company focuses on enterprise sales growth, subscription services expansion, and investment in its streaming platform to boost revenue.LG Electronics Inc. is considering an initial public offering for its India business, tapping a booming stock market to help hit a target of $75 billion in electronics revenue by 2030. Chief Executive Officer William Cho said an Indian market debut is one of several options it's weighing to revitalize a decades-old consumer electronics business. It's the first time the South Korean company, which competes head-on with larger rival Samsung Electronics Co., has spoken publicly about an Indian debut, the subject of persistent market and media speculation. Cho -- who ascended to the top post in 2021 after more than three decades with the flagship of the family-owned LG Group -- has set a goal of growing the electronics business to an annual revenue of 100 trillion won ($75 billion) by 2030. That's versus overall company revenue of about $65 billion in 2023. It aims to get there in part by earning more from enterprise clients -- targeting about 45% of sales from other companies by the end of the decade, versus 35% now. "It is one of many options we can consider," Cho told Bloomberg Television. "I understand there's increased interest among global investors," he said, referring to a potential IPO in India. "As of now, nothing is confirmed." In India, LG seeks to sustain rapid growth. In the first six months of this year, revenue at LG's unit within the Asian country rose 14% to a record 2.87 trillion won, while net income climbed 27% to 198.2 billion won. Any IPO would coincide with a boom in India's capital markets. Some 189 companies aim to sell shares to raise $5.6 billion this year, making it one of the busiest markets in this space. At least 30 IPOs joined the pipeline as demand powered by domestic money pushes companies to explore listings. Korean peer Hyundai Motor Co. is preparing to raise as much as $3.5 billion in an Indian IPO, Bloomberg News reported this month. "We have been watching carefully what's going on in the Indian market in terms of IPOs and following similar industry and similar IPO cases," Cho said. LG hasn't yet calculated possible valuations for its Indian unit, he added. Cho, 61, plans to nurture new businesses that can each bring in more than 1 trillion won of annual revenue. Among them is heating, ventilation and air-conditioning, for which the company has 11 production sites globally. Chillers -- large air conditioners for buildings -- have become key for artificial intelligence data centers, which are sprouting up across the world as companies pursue generative AI. Over the past three years, overseas sales of LG's chillers have grown 40% annually, on average. LG is also expanding its subscription service for home appliances. In Korea, consumers can rent products such as washing machines and laptops ranging from three to six years by paying a monthly fee. In theory, that improves affordability and convenience: Some 35% of consumers are now opting for subscriptions, Cho said. The company recently began offering subscriptions in Malaysia and plans to roll that model out to customers in Thailand, Taiwan and India starting this year, and potentially the US and Europe in the future. LG expects revenue from the subscription business to grow 60% to about $1.3 billion in 2024. The company's also planning to expand its free ad-supported streaming services. Cho said LG will invest 1 trillion won by 2027 to grow its webOS-based advertising and content business. "Half of my career was spent outside Korea, and it is about understanding customers and creating new business models for them," said Cho, who has worked with LG in North America, Germany and Australia.
[4]
LG Electronics weighs India IPO to help chase $75 billion goal - Times of India
LG Electronics explored the idea of an IPO for its Indian unit, aiming to elevate its annual electronics revenue to $75 billion by 2030. CEO William Cho outlined the company's strategic initiatives and growth in India. The company has seen a notable increase in revenue and net income in the region, supporting its broader objectives. LG Electronics Inc is considering an initial public offering for its India business, tapping a booming stock market to help hit a target of $75 billion in electronics revenue by 2030. Chief Executive Officer William Cho said an Indian market debut is one of several options it's weighing to revitalize a decades-old consumer electronics business. It's the first time the South Korean company, which competes head-on with larger rival Samsung Electronics Co, has spoken publicly about an Indian debut, the subject of persistent market and media speculation. Cho -- who ascended to the top post in 2021 after more than three decades with the flagship of the family-owned LG Group -- has set a goal of growing the electronics business to an annual revenue of 100 trillion won ($75 billion) by 2030. That's versus overall company revenue of about $65 billion in 2023. It aims to get there in part by earning more from enterprise clients -- targeting about 45% of sales from other companies by the end of the decade, versus 35% now. "It is one of many options we can consider," Cho told Bloomberg Television. "I understand there's increased interest among global investors," he said, referring to a potential IPO in India. "As of now, nothing is confirmed." In India, LG seeks to sustain rapid growth. In the first six months of this year, revenue at LG's unit within the Asian country rose 14% to a record 2.87 trillion won, while net income climbed 27% to 198.2 billion won. Any IPO would coincide with a boom in India's capital markets. Some 189 companies aim to sell shares to raise $5.6 billion this year, making it one of the busiest markets in this space. At least 30 IPOs joined the pipeline as demand powered by domestic money pushes companies to explore listings. Korean peer Hyundai Motor Co. is preparing to raise as much as $3.5 billion in an Indian IPO, Bloomberg News reported this month. "We have been watching carefully what's going on in the Indian market in terms of IPOs and following similar industry and similar IPO cases," Cho said. LG hasn't yet calculated possible valuations for its Indian unit, he added. Cho, 61, plans to nurture new businesses that can each bring in more than 1 trillion won of annual revenue. Among them is heating, ventilation and air-conditioning, for which the company has 11 production sites globally. Chillers -- large air conditioners for buildings -- have become key for artificial intelligence data centers, which are sprouting up across the world as companies pursue generative AI. Over the past three years, overseas sales of LG's chillers have grown 40% annually, on average. LG is also expanding its subscription service for home appliances. In Korea, consumers can rent products such as washing machines and laptops ranging from three to six years by paying a monthly fee. In theory, that improves affordability and convenience: Some 35% of consumers are now opting for subscriptions, Cho said. The company recently began offering subscriptions in Malaysia and plans to roll that model out to customers in Thailand, Taiwan and India starting this year, and potentially the US and Europe in the future. LG expects revenue from the subscription business to grow 60% to about $1.3 billion in 2024. The company's also planning to expand its free ad-supported streaming services. Cho said LG will invest 1 trillion won by 2027 to grow its webOS-based advertising and content business. "Half of my career was spent outside Korea, and it is about understanding customers and creating new business models for them," said Cho, who has worked with LG in North America, Germany and Australia.
[5]
LG Eyes India IPO To Fuel Ambitious $75 Billion Global Expansion Strategy
LG hasn't yet calculated possible valuations for its Indian unit LG Electronics Inc. is contemplating an initial public offering for its India business, leveraging the thriving stock market to support its ambitious goal of achieving $75 billion in electronics revenue by 2030. According to a Bloomberg report, CEO William Cho mentioned that a debut in the Indian market is among several strategies being considered to rejuvenate the company's decades-old consumer electronics business. It's the first time the South Korean company, which competes head-on with larger rival Samsung Electronics Co., has spoken publicly about an Indian debut, the subject of persistent market and media speculation, the report said. Cho -- who ascended to the top post in 2021 after more than three decades with the flagship of the family-owned LG Group -- has set a goal of growing the electronics business to an annual revenue of 100 trillion won ($75 billion) by 2030. That's versus overall company revenue of about $65 billion in 2023. It aims to get there in part by earning more from enterprise clients -- targeting about 45% of sales from other companies by the end of the decade, versus 35% now. "It is one of many options we can consider," Cho told Bloomberg Television. "I understand there's increased interest among global investors," he said, referring to a potential IPO in India. "As of now, nothing is confirmed." In India, LG seeks to sustain rapid growth. In the first six months of this year, revenue at LG's unit within the Asian country rose 14% to a record 2.87 trillion won, while net income climbed 27% to 198.2 billion won. "We have been watching carefully what's going on in the Indian market in terms of IPOs and following similar industry and similar IPO cases," Cho said. LG hasn't yet calculated possible valuations for its Indian unit, he added. Cho, 61, plans to nurture new businesses that can each bring in more than 1 trillion won of annual revenue. Among them are heating, ventilation and air-conditioning, for which the company has 11 production sites globally. Chillers -- large air conditioners for buildings -- have become key for artificial intelligence data centers, which are sprouting up across the world as companies pursue generative AI. Over the past three years, overseas sales of LG's chillers have grown 40% annually, on average. LG is also expanding its subscription service for home appliances. The company is also planning to expand its free ad-supported streaming services. Cho said LG will invest 1 trillion won by 2027 to grow its webOS-based advertising and content business. "Half of my career was spent outside Korea, and it is about understanding customers and creating new business models for them," said Cho, who has worked with LG in North America, Germany and Australia.
[6]
LG Electronics weighs India IPO to help chase $75 billion goal
LG Electronics Inc. is considering an initial public offering for its India business, tapping a booming stock market to help hit a target of $75 billion in electronics revenue by 2030. Chief Executive Officer William Cho said an Indian market debut is one of several options it's weighing to revitalize a decades-old consumer electronics business. It's the first time the South Korean company, which competes head-on with larger rival Samsung Electronics Co., has spoken publicly about an Indian debut, the subject of persistent market and media speculation. Cho -- who ascended to the top post in 2021 after more than three decades with the flagship of the family-owned LG Group -- has set a goal of growing the electronics business to an annual revenue of 100 trillion won ($75 billion) by 2030. That's versus overall company revenue of about $65 billion in 2023. It aims to get there in part by earning more from enterprise clients -- targeting about 45% of sales from other companies by the end of the decade, versus 35% now. Also read: LG to focus on raising localisation of commercial ACs in India "It is one of many options we can consider," Cho told Bloomberg Television. "I understand there's increased interest among global investors," he said, referring to a potential IPO in India. "As of now, nothing is confirmed." In India, LG seeks to sustain rapid growth. In the first six months of this year, revenue at LG's unit within the Asian country rose 14 per cent to a record 2.87 trillion won, while net income climbed 27 per cent to 198.2 billion won. Any IPO would coincide with a boom in India's capital markets. Some 189 companies aim to sell shares to raise $5.6 billion this year, making it one of the busiest markets in this space. At least 30 IPOs joined the pipeline as demand powered by domestic money pushes companies to explore listings. Korean peer Hyundai Motor Co. is preparing to raise as much as $3.5 billion in an Indian IPO, Bloomberg News reported this month. "We have been watching carefully what's going on in the Indian market in terms of IPOs and following similar industry and similar IPO cases," Cho said. LG hasn't yet calculated possible valuations for its Indian unit, he added. Cho, 61, plans to nurture new businesses that can each bring in more than 1 trillion won of annual revenue. Among them is heating, ventilation and air-conditioning, for which the company has 11 production sites globally. Chillers -- large air conditioners for buildings -- have become key for artificial intelligence data centers, which are sprouting up across the world as companies pursue generative AI. Over the past three years, overseas sales of LG's chillers have grown 40% annually, on average. LG is also expanding its subscription service for home appliances. In Korea, consumers can rent products such as washing machines and laptops ranging from three to six years by paying a monthly fee. In theory, that improves affordability and convenience; some 35 per cent of consumers are now opting for subscriptions, Cho said. The company recently began offering subscriptions in Malaysia and plans to roll that model out to customers in Thailand, Taiwan and India starting this year, and potentially the US and Europe in the future. LG expects revenue from the subscription business to grow 60 per cent to about $1.3 billion in 2024. The company's also planning to expand its free ad-supported streaming services. Cho said LG will invest 1 trillion won by 2027 to grow its webOS-based advertising and content business. Also read: Akums Drugs and Pharmaceuticals back in black with ₹42 crore standalone net profit for June quarter "Half of my career was spent outside Korea, and it is about understanding customers and creating new business models for them," said Cho, who has worked with LG in North America, Germany and Australia. More stories like this are available on bloomberg.com SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on August 27, 2024
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LG Electronics is exploring the possibility of an initial public offering (IPO) for its Indian unit as part of its strategy to achieve a global revenue target of $75 billion by 2030. This move could potentially value the Indian business at over $5 billion.
LG's Strategic Move Towards India IPO
LG Electronics, the South Korean consumer durables giant, is contemplating a significant step in its global expansion strategy. The company is exploring the possibility of an initial public offering (IPO) for its Indian unit, LG Electronics India Pvt 1. This move is part of LG's ambitious plan to achieve a global revenue target of $75 billion by 2030, as announced by its CEO William Cho 2.
Potential Valuation and Market Impact
The proposed IPO could potentially value LG's Indian business at over $5 billion, according to sources familiar with the matter 3. This valuation reflects the significant growth and potential of LG's operations in India, which is one of the company's largest overseas markets. The IPO, if realized, would mark a major milestone for LG in India and could potentially be one of the largest listings in the country's consumer durables sector.
LG's Performance in India
LG Electronics India has shown robust performance in recent years. For the fiscal year ending March 2023, the company reported revenues of ₹17,171 crore (approximately $2.1 billion), with a net profit of ₹1,174 crore ($141 million) 4. These figures underscore the importance of the Indian market in LG's global operations and its potential for future growth.
Strategic Considerations and Timeline
While the IPO plans are still in the early stages, LG is reportedly working with advisers to prepare for a potential listing 5. The company is evaluating various options, including the possibility of listing the entire Indian unit or specific business segments. The timeline for the IPO remains flexible, with the company considering a listing as early as 2024, depending on market conditions and regulatory approvals.
Implications for LG's Global Strategy
This potential IPO aligns with LG Electronics' broader strategy to enhance its global presence and achieve substantial revenue growth. By tapping into the Indian capital markets, LG aims to unlock value from its Indian operations and potentially fuel further expansion in one of the world's fastest-growing economies. The move also reflects the increasing importance of the Indian market in the global strategies of multinational corporations.
Reference
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Samsung and LG Drive 10%+ Revenue Growth in India with AI-Enabled Products and Strategic Moves
Samsung and LG, South Korean electronics giants, achieved over 10% revenue growth in India during 2024, leveraging AI-driven products, aggressive pricing, and export strategies. This success comes despite a subdued Indian electronics market affected by high inflation.
2 Sources
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LG Energy Solution and LG Electronics Report Strong Q2 2024 Financial Results
LG Energy Solution and LG Electronics have released their financial results for the second quarter of 2024, showcasing robust performance and growth in various sectors. Both companies have reported significant increases in revenue and operating profit, driven by strategic initiatives and market demand.
4 Sources
4 Sources
LG Electronics Acquires Majority Stake in AI Robotics Startup Bear Robotics
LG Electronics has increased its stake in Bear Robotics to 51%, gaining management control of the AI-powered robotics startup. This move aligns with LG's strategy to expand its robotics business and enhance its AI capabilities.
2 Sources
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LG Corp. CEO Outlines Vision for 2025: Embracing AI and Innovation
LG Corp. Chairman and CEO Kwang Mo Koo delivers a New Year address to 270,000 global employees, emphasizing the company's commitment to innovation, AI integration, and customer-centric values for 2025.
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LG Electronics and Microsoft Forge Strategic Partnership for AI Innovation in Smart Spaces
LG Electronics partners with Microsoft to develop advanced AI agents for homes, vehicles, and commercial spaces, aiming to create more empathetic and personalized user experiences.
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