LG Electronics Inc. is contemplating an initial public offering (IPO) for its India business as part of its strategy to achieve a $75 billion revenue target by 2030. This marks the first time the South Korean company, which competes with industry giant Samsung Electronics Co., has publicly discussed the possibility of listing its Indian operations.
CEO William Cho revealed that an Indian market debut is among several options being considered to rejuvenate LG’s consumer electronics sector. Cho, who has led the company since 2021, aims to grow LG’s electronics revenue to 100 trillion won ($75 billion) by the end of the decade, up from approximately $65 billion in 2023. The company plans to increase its revenue from enterprise clients to 45% of total sales, up from the current 35%.
Cho noted that there is significant interest from global investors regarding a potential IPO in India, though no decisions have been finalized. LG’s Indian operations have shown robust growth, with a 14% rise in revenue to 2.87 trillion won and a 27% increase in net income to 198.2 billion won in the first half of this year.
The potential IPO would align with India’s thriving capital markets, where over 200 companies have gone public this year, raising $7.1 billion. LG is closely monitoring these market trends, following a similar path to Korean peer Hyundai Motor Co., which is preparing for a substantial IPO in India.
Cho, 61, is also focused on expanding LG’s new business areas, such as heating, ventilation, and air-conditioning. This segment, crucial for AI data centers, has seen significant growth, with overseas sales of LG’s chillers increasing by 40% annually over the past three years.
