Samsung and LG Drive 10%+ Revenue Growth in India with AI-Enabled Products and Strategic Moves

Samsung, LG drive 10%+ revenue growth in India with AI-driven products & strategic launches

Samsung and LG, the two South Korean leaders that have helped millions of Indians step on to the consumption ladder for the first time over the past couple of decades, harnessed an increasingly AI-embedded product range and competitive pricing to log 10%-plus revenue growth in 2024 in the country that otherwise reported rather circumspect demand. Latest global filings showed Samsung Electronics posted sales of 17.04 trillion Korean won (about ₹1,03,229 crore) in India in 2024, signalling a 12% year-on-year growth. LG Electronics' data showed sales in India surged 14% YoY to 3.79 trillion Korean won last year. The filings did not attribute reasons for the financial performance. By contrast, Samsung's sales in India in 2023 had declined by 6% over 2022, while LG's had expanded by a marginal 3.5% in the same period, the filings show. Both the chaebols globally follow the calendar year as their respective fiscal years. An industry executive said the Korean duo overcame a circumspect local market through aggressive new launches, promotional offers, and discounts, especially during the crucial festive season. They are also expanding exports out of India, especially Samsung in smartphones. "They are rolling out new trending features like AI in their products," he said. The filings show Samsung India's profit surged 22% YoY to 1.41 trillion Korean won (about ₹8,527 crore) in 2024, while that of LG's climbed 43% YoY to 331 billion Korean won (about ₹2,000 crore). In India, Samsung and LG enjoy leadership in most categories. Samsung leads in televisions and has a competitive market share in smartphones, despite the availability of cheaper Chinese alternatives. LG, meanwhile, leads in refrigerators, washing machines and microwave ovens. An email sent to Samsung India did not elicit any response, while an LG Electronics spokesperson said the company will not be able to comment since its Indian subsidiary has put out a draft red herring prospectus (DRHP) with Sebi. The regulator is currently reviewing the DRHP. LG plans an IPO of its India business where the parent will sell up to 15% stake. LG's global investor relations chief, Wonjae Park, told analysts last month the home appliance sector drove strong performance in 2024 compared to previous year with revenue growth of nearly10% and operating margin at low teens. This, he said, was underpinned by LG's strategy in targeting both premium and mass consumers, and the bullish growth of residential and commercial AC orders from property developers. "This year, we will fast-forward this business momentum to penetrate into the lives of Indian consumers, by gaining a larger market share and starting our subscription business," said Park. LG and Samsung in India compete against multiple global brands like Apple, Xiaomi, Haier, Whirlpool, Oppo, Vivo and also Tata-owned Voltas in the AC segment.

AI-enabled products, exports & aggressive pricing boost Samsung & LG's India sales by 10 per cent in 2024

Aggressive pricing, AI-enabled products, and export strategies have driven Samsung and LG's financial performance in India to see over 10% yoy sales growth in 2024. Both companies reported significant profit increases, despite India's subdued electronics market due to high inflation impacting consumer spending. Aggressive pricing, artificial intelligence enabled products and exports drove South Korean electronic majors Samsung and LG to improve their financial performance in India in calendar 2024 with over 10% year-on-year (yoy) sales growth as compared to the year before. As per their latest global filings, Samsung Electronics Co Ltd posted sales of 17.04 trillion Korean won (about Rs 1,03,229 crore) in India in 2024 which went up by 12% yoy, while LG Electronics Inc sales in India surged by 14% yoy to 3.79 trillion Korean won last year. The filings did not attribute any reason behind the performance last year. In contrast, Samsung's sales in India in 2023 had declined by 6% over 2022, while LG's had grown by a marginal 3.5% in the same period, the filings show. Both the chaebols globally follow the calendar year as their fiscal year. An industry executive said despite the electronics market in India remaining subdued due to high inflation impacting consumer spending, the Korean duo were aggressive with new launches, promotional offers and discounts especially during the crucial festive season which drove sales. "They are rolling out new trending features like AI in their products," he said. The filings show Samsung India's profit surged by 22% yoy to 1.41 trillion Korean won (about Rs 8527 crore) in 2024 while that of LG's went up by 43% yoy to 331 billion Korean won (about Rs 2000 crore). In India, Samsung and LG enjoy leadership in most categories. Samsung leads in televisions and has a fierce fight with the Chinese brands in smartphones, while LG leads refrigerators, washing machines and microwave ovens. An email sent to Samsung India did not elicit any response, while a LG Electronics spokesperson said the company will not be able to comment since its Indian subsidiary has put out a draft red herring prospectus with SEBI which is currently under review. LG is planning an initial public offering of its India business where the parent will sell up to 15% stake. LG's global investor relations chief Wonjae Park told analysts last month the home appliance sector drove strong performance in 2024 compared to previous year with revenue growth of nearly10% and operating margin at low teens. This, he said, was underpinned by LG's strategy in targeting both premium and mass consumers, and the bullish growth of residential and commercial AC orders from property developers. "This year, we will fast-forward this business momentum to penetrate into the lives of Indian consumers, by gaining a larger market share and starting our subscription business. In terms of capacity, we will ensure stability in operations of our local production through enhanced productivity of the subsidiary, greater operational efficiency of OEMs, and flexibility in shift in production aligned to volumes as part of the larger efforts in meeting India's rising market demand," said Park. LG and Samsung in India compete against multiple global brands like Apple, Xiaomi, Haier, Whirlpool, Oppo, Vivo and also Tata-owned Voltas in the AC segment.