LG Electronics IPO: Check IPO Date, Lot Size, Price & Details

Overview

LG Electronics India Ltd., incorporated in 1997 as a wholly owned subsidiary of LG Electronics, is the leading player in India’s home appliances and consumer electronics market (excluding mobile phones). The company has consistently held the No. 1 position across key categories such as washing machines, refrigerators, panel televisions, inverter air conditioners, and microwaves, maintaining its leadership in the offline channel from CY2022 to H1 CY2025.

Backed by the global leadership of LG Electronics, the company benefits from strong brand equity, cutting-edge technology, and a legacy of over 28 years in India. The LG brand continues to command strong consumer trust, being ranked among Interbrand’s Top 100 Global Brands in 2024.

The company offers one of the widest product portfolios in the industry, complemented by a strong focus on innovation. It has pioneered several “firsts” in India, including the introduction of inverter air conditioners in 2014, a complete transition to inverter AC technology in 2017, and the use of stainless-steel tanks in water purifiers. Energy efficiency remains a key differentiator, with LG leading in the share of 5-star rated appliances across categories.

LG India operates the largest distribution and service network among peers, with over 35,000 B2C touchpoints, a dedicated B2B partner base, and one of the most extensive after-sales service networks, comprising 1,000+ service centres and 13,000+ engineers. Strong relationships with trade partners - nearly half associated for over a decade - enable the company to sustain its market leadership.

The company’s manufacturing capabilities further strengthen its competitive position. With two advanced plants at Noida and Pune, LG India had an installed capacity of 1.45 crore units in FY25, supported by in-house production of key components such as compressors and motors. Capacity utilisation stood at ~85%, and a new facility in Andhra Pradesh is under development, expected to be operational by FY27. A robust supplier base and a pan-India supply chain of 25 warehouses enhance production flexibility and cost efficiency. Importantly, more than half of raw materials are sourced locally, enabling cost advantages, reducing forex exposure, and aligning with the government’s “Make in India” initiative.

Financially, LG India derives the majority of its revenue from the Home Appliances & Air Solutions segment (~78%), led by refrigerators, washing machines, and air conditioners, while the Home Entertainment segment (~21%) is driven largely by panel televisions. Service revenues from installation, repair, and maintenance also provide a growing stream of income.

IPO Details

Object of the issue

Note: The IPO is entirely an Offer for Sale (OFS). Hence, the company will not receive any proceeds from the issue. The selling shareholders will receive the proceeds.

Key Strengths

• Sustained Market Leadership with a Diversified Product Portfolio
  LG India has maintained market leadership across major home appliance and consumer electronics categories over multiple years, excelling in both volume and premium segments. The company offers one of the broadest product portfolios in the industry, spanning advanced TV technologies such as OLED, QNED, NanoCell, UHD, and LED, along with leading appliances including washing machines, refrigerators, inverter air conditioners, and microwaves. This combination of sustained leadership, wide market appeal, and diverse product offerings reinforces LG India’s position as a market leader in the Indian consumer durables sector.
• Pan-India Distribution and Strong After-Sales Network
  LG India has the largest distribution network among home appliances and consumer electronics players with 35,640 B2C (Business to Consumer) touchpoints spanning LG BrandShops, modern trade, online platforms, and traditional stores. Its reach is further supported by 97 sales offices in semi-urban and rural areas and long-standing trade partnerships. The company also runs one of India’s largest after-sales networks, comprising 1,006 service centres, 13,368 engineers, and 4 call centres, offering same-day installation and repairs. This infrastructure enhances consumer satisfaction across premium and mass-market segments. Additionally, LG exports to 47 countries across Asia, Africa, and Europe, strengthening its international presence.
• Operational Efficiency through Manufacturing Capabilities and Localised Supply Chain
  LG India drives efficiency with 85%+ of sales from in-house production at its Noida and Pune units, ensuring cost control, quality, and faster delivery. Flexible, automated lines-supported by 77 auto-guided vehicles, robotics, and smart monitoring systems-enable multi-product manufacturing and lifted productivity per hour by 29% in ACs and 13% in washing machines (FY22-25). A localised supply chain with 287 long-term suppliers (average 13.13 years) has raised domestic sourcing to 53.79% in FY25, reducing import reliance, logistics costs, and FX exposure, while strengthening resilience and competitiveness.

Key Risks

• Dependence on LG Electronics for Brand, Technology, and IP
  LG India is highly dependent on LG Electronics, its Promoter, for brand, product innovations, design, technology, and technical know-how. The company operates under a License Agreement requiring royalty payments of 1.80-1.90% of net sales for authorised products. Any termination or adverse change in this relationship could prevent LG India from using the licensed brand or IP, potentially impacting business operations, reputation, financial condition, and results. Dependence on LG Electronics also extends to exports, services, and other critical operational aspects, making the company vulnerable to decisions or disputes within the LG Group.
• Royalty and Tax Risk
  LG India faces risks related to international tax disputes over royalty payments to its South Korean parent, LG Electronics. While the company has a proposed agreement to settle a significant historical dispute and nullify a potential ₹315.30 crore liability, the agreement is not yet final. Failure to execute it could re-expose LG India to these liabilities. Moreover, the settlement only covers periods up to March 2023, and there is no assurance that tax authorities will not raise similar issues for future periods, which could adversely affect the company’s financial condition and results of operations.
• Potential Conflicts of Interest with Promoter and Key Personnel
  LG India may face conflicts of interest with its Promoter, LG Electronics, which could engage in businesses similar to those of the company in India in the future. While subsidiaries like Hi-M Solutek India Private Limited currently provide services only to LG India, there is no exclusive arrangement, and they could expand to compete or serve competitors. Additionally, LG India depends on LG Electronics for its export business, and delays or failures in accessing markets could adversely affect operations. Certain Directors and Key Personnel also hold interests in the company, which could influence decisions in ways that may not always align with shareholder interests.

Financial Snapshot

Peer Comparison

Conclusion

LG Electronics India, a market leader in home appliances and consumer electronics, combines strong brand equity, wide product offerings, and a pan-India distribution and after-sales network. Its in-house manufacturing, automation, and localised supply chain enhance efficiency and reduce costs. With robust financials—high margins, ROCE, and RONW—the company consistently outperforms peers. While risks exist from royalty obligations, tax disputes, and dependence on the parent, based on LG India’s strong fundamentals, operational efficiency, and growth potential, we recommend subscribing for long-term investment to make it a solid long-term investment in India’s consumer durables sector.