LG Electronics India
- LG Electronics India is coming out with a 100% book building; initial public offering (IPO) of 10,18,15,859 shares of Rs 10 each in a price band Rs 1080-1140 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on October 7, 2025 and will close on October 9, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 108.00 times of its face value on the lower side and 114.00 times on the higher side.
- Book running lead managers to the issue are Axis Capital, Citigroup Global Markets India, Morgan Stanley India Company, J.P. Morgan India and BofA Securities India.
- Compliance Officer for the issue is Anuj Goyal.
Profile of the company
LG Electronics India has been the number one player in major home appliances and consumer electronics (excluding mobile phones) in India for the six months ended June 30, 2025, CY2024, CY2023 and CY2022 as per the market share (in terms of value) in the offline channel. The company is also market leaders in India across multiple product categories including washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves, based on the market share (in terms of value) in the offline channel (which represents around 78% and 77% of the major home appliances and consumer electronics market (excluding mobile phones) in India in terms of value in the same period) for the twelve-month period ending December 31, 2024 and the six months ended June 30, 2025, respectively.
The company offered one of the widest product portfolios amongst leading home appliances and consumer electronics players (excluding mobile phones) in India as of June 30, 2025. It sells products to B2C and B2B consumers in India and outside India. It also offers installation services, and repairs and maintenance services for all its products. It operates its business across two segments namely home appliances & air solutions and home entertainment.
The company operates the largest distribution network among leading home appliances and consumer electronics players in India as of June 30, 2025. The company’s distribution network spans across urban and rural India through 35,640 B2C touch points for the three months ended June 30, 2025. It serviced consumers through a dedicated team 463 B2B trade partners as of June 30, 2025, and also had a team of 286 employees engaging in customer service as of June 30, 2025.
Proceed is being used for:
- Carrying out the offer for sale of up to 101,815,859 equity shares of face value of Rs 10 each by the Selling Shareholder
- Achieving the benefits of listing the Equity Shares on the Stock Exchanges
Industry Overview
India’s appliances and electronics market has grown at 7% from CY2019 to CY2024 and this growth is expected to accelerate to 11% from CY2024 to CY2029 driven by rising disposable incomes, growing urbanization, and increasing penetration of appliances and electronics in both urban and rural areas. The market is segmented into B2C and B2B segments, with the B2C segment characterized by expansive distribution across organized and unorganized retail, e-commerce, and exclusive brand outlets. The B2C market is witnessing significant transformation as consumers shift from basic utility devices to more premium, technology-driven products across categories such as major kitchen appliances, home entertainment and consumer electronics, and new-age services such as appliance subscriptions. On the other hand, the B2B segment is also vibrant and growing rapidly, driven by institutional demand across sectors such as hospitality, healthcare, retail, and commercial establishments.
The overall total addressable market (TAM) for the India appliances & electronics brands was estimated at Rs 3,245 billion ($38.2 billion) in CY2024, having grown at a CAGR of 12% from CY2019 to CY2024. As of H1CY2025 (Annualized), TAM stands at Rs 3,505 billion ($41.2 billion). It is projected to reach Rs 6,190 billion ($72.8 billion) by CY2029P, growing at a 5-year CAGR of 14%. The TAM encompasses both B2C and B2B segments and excludes mobile phones. This reflects demand from households, commercial enterprises, and institutional buyers such as hospitals, hotels, and government bodies. This growth will be fueled by the continued expansion of urban and rural markets, increased penetration of energy-efficient appliances, and the ongoing premiumization of consumer products.
In conclusion, India’s appliances and electronics market is set on a solid growth path, supported by favorable macroeconomic conditions, rising disposable incomes, and a demographic shift toward urbanization and middleclass expansion. The industry’s potential is reinforced by India’s increasing consumer appetite for advanced appliances and electronics that deliver convenience, efficiency, and connectivity. The sector is further bolstered by supportive government policies that encourage domestic manufacturing, including the PLI scheme and ‘Make in India’ initiatives, which are building a foundation for self-reliance in the industry. While challenges such as supply chain dependencies, regulatory pressures, and evolving consumer expectations present obstacles, companies with strategic focus on product innovation, brand trust, and local responsiveness are well-positioned to navigate these complexities. With these favorable conditions, the Indian appliances and electronics market represents a dynamic and resilient landscape where companies can create long-term value by aligning with the evolving needs and aspirations of the Indian consumer. This robust growth trajectory underscores India’s emergence as a key market in the global appliances and electronics arena, paving the way for sustained industry expansion.
Pros and strengths
Leading market share in the home appliances and consumer electronics industry in India: The company has been the number one player in this industry for the six months ended June 30, 2025, CY2024, CY2023 and CY2022 as per the market share (in terms of value) in the offline channel in India. It is also market leaders in India across multiple product categories including washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves, based on the market share (in terms of value) in the offline channel (which represents approximately 78% and 77% of the major home appliances and consumer electronics market (excluding mobile phones) in India in terms of value in the same period) for the twelve-month period ending December 31, 2024 and the six months ended June 30, 2025, respectively.
Introducing innovative technologies: The company’s 28 years of experience in India has enabled it to develop insights into consumers’ preferences in India and understand the demands of Indian consumers. It addresses this demand by leveraging the global leadership of LG Electronics recognized is a pioneer of innovative technology, to introduce new and innovative products for its consumers in India, and where necessary, customize some of these products to cater to Indian consumer preferences and local requirements. As a result, the company has introduced many industry-first technologies in the home appliances and consumer electronics industry in India.
Shaping consumer experience with Pan-India distribution: The company operates the largest distribution network among leading home appliances and consumer electronics players in India as of June 30, 2025. The company has an expansive sales network through 35,640 B2C touch points (comprising LG Brand Shops that are strategically located in main shopping areas of the cities and towns, modern trade stores such as Reliance Retail, Croma (Infiniti Retail) and Vijay Sales, online touch points, traditional stores, distributors and sub-dealers), for the three months ended June 30, 2025. It also engaged with consumers online through its website and e-commerce marketplaces, and its modern trade partners engage with consumers through their own e-commerce platforms. Its extensive offline presence, combined with its growing digital footprint, offer its consumers the opportunity to browse and purchase its products online and interact with its products in-person and receive personalized consumer services in store.
Operational efficiency through strong manufacturing capabilities and localized supply chain: The company had one of the largest in-house production capacity (excluding mobile phones) amongst leading home appliances and consumer electronics players in India as of June 30, 2025. The company has two manufacturing units located in Noida and Pune which in aggregate accounted for 85.51%, 84.18%, 86.05%, 85.73% and 85.28% of its overall sales in the three months ended June 30, 2025 and 2024, and Fiscals 2025, 2024 and 2023, respectively. The remaining sales volume constitutes products that are manufactured by third-parties based on specifications and blue printers provided by it, and sold as is without modifications or imported from other members of the LG Group. It manufactures key components of its products at its Noida Manufacturing Unit and Pune Manufacturing Unit, which gives it greater control over the product development process, product quality, costs and supply and delivery time.
Risks and concerns
Dependent on limited suppliers for raw material supply: The company’s top-five suppliers and top-10 suppliers contributed 22.08% and 32.25% of its total purchases of raw materials, including components, in the three months ended June 30, 2025, respectively. Further, it sources certain raw materials from suppliers in select countries outside India. Any interruption in the availability of raw materials due to geopolitical uncertainties, shortages or supplier misconduct, among other reasons, could adversely impact its business operations.
Decrease in market share across select product categories: The company’s market share across select product categories has decreased. The decrease in its market share from CY2021 to CY2024 for refrigerators and washing machines resulted from its strategic decision to optimize its product portfolio by not operating in basic entry price segments, thereby maximizing its profit. Similarly, for panel televisions, the decline in its market share from CY2021 to CY2024 was due to its focus on profit maximization and product portfolio optimization, which led it to not aggressively pursue the basic entry segment. Any further decline in its market share for its major products or its inability to increase its market share across major products it offers, could adversely impact its business, results of operations and financial condition.
Geographical constrain: The company currently manufacture its products at the Noida Manufacturing Unit and the Pune Manufacturing Unit. Any disruptions or stoppages at its manufacturing units could adversely impact its business, financial condition and results of operations. Further, if it fails to maintain or increase the utilization levels of its manufacturing units, its business, future prospects and financial performance could be materially and adversely affected.
Stiff competition: As the company operates in multiple product and service categories, it faces a broad range of competition from existing and new competitors ranging from large multinational companies to highly specialized entities that focus on a limited number of products and services. It competes with Indian, Chinese and global players in the consumer electronics and home appliances industry in India, such as Voltas, Havells, Godrej, Blue Star, Haier, Whirlpool, Philips, Samsung and Sony, among others. It also faces competition from emerging business models, such as brands introduced by consumer electronics retail chains and online-first brands.
Outlook
LG Electronics India is a manufacturer and distributor of home appliances and consumer electronics (excluding mobile phones). The company sell products to B2C and B2B consumers in India and outside India. It is leading market share in the home appliances and consumer electronics industry in India with no. 1 market share across key product categories. On the concern side, the company’s top-five suppliers and top-ten suppliers contributed significant percentage of its total purchases of raw materials, including components. Further, it sources certain raw materials from suppliers in select countries outside India. Any interruption in the availability of raw materials due to geopolitical uncertainties, shortages or supplier misconduct, among other reasons, could adversely impact its business operations.
The issue has been offering 10,18,15,859 shares in a price band of Rs 1080-1140 per equity share. The aggregate size of the offer is around Rs 10,996.11 crore to Rs 11,607.01 crore based on lower and upper price band respectively. Minimum application is to be made for 13 shares and in multiples thereon, thereafter. On performance front, the company’s total income increased by 14.26% to Rs 246,306.28 million in Fiscal 2025 from Rs 215,571.18 million in Fiscal 2024. Moreover, the company’s profit for the year increased by 45.81% to Rs 22,033.48 million in Fiscal 2025 from Rs 15,110.68 million in Fiscal 2024.
The company is focused on introducing in India products equipped with new technologies backed by AI, and have luxurious, sleek and modern designs, that are popular in developed markets. It strives to upgrade its products by incorporating consumer feedback and responding to consumer demand. The company is committed to incorporating advanced technological features backed by AI and the LG ThinQ technology for smart home integration in its products to enhance its consumer experience. The Wi-fi and mobile connectivity features in its products enable consumers to control their appliances remotely through their mobile phones. The company was amongst the first leading home appliances and consumer electronics players to introduce the Energy Manager feature in air conditioners in India which allows users to monitor the energy consumption of their products through the LG ThinQ app. As it expands its premium offerings, its consumers will have access to more product choices and have the option to upgrade to more feature-rich models within its product range.
