LG India eyes smaller towns for premium products, looks to expand exports to Europe

LG india

LG Electronics India is sharpening its focus on India's smaller towns, aiming to widen access to premium products such as  OLED TVs, side-by-side refrigerators, by bringing them to market at more affordable price points, chief sales officer Sanjay Chitkara said in a media interaction on October 1.

The Indian subsidiary of South Korean electronics giant LG Electronics Inc will have its initial public offering (IPO) opens for public subscription on October 7, 2025, with the price band in the range of Rs 1,080- Rs 1,140.

The plan to go public comes as the company is sharpening its focus on the domestic markets, to improve penetration of its appliances across the urban and non-urban markets, while simultaneously positioning the country as a global manufacturing and export hub.

"We have a very large consumer base here and the way urbanization is happening and middle class is expanding, India will remain a very strong economy for our products," Chitkara  said.

On the global front, LG plans to turn India into a key export hub. Its $600 million investment in the Sri City facility in Andhra Pradesh is geared towards scaling production not just for local consumption but also for overseas markets.

"We will add some newer geographies and some newer product categories for our exports. Exports will not only be in the underdeveloped economies like Southeast Asia, we would be adding more to Europe as well as other developed markets too," Chitkara added.

The company already exports to 47 countries via its manufacturing plants in Uttar Pradesh and Maharashtra. Indian exports revenue stood at $160 million in FY25, up 45 per cent YOY.

High bets on premiumisation in tier 2, tier 3 markets 

LG India is looking to make premium appliances more affordable in India by ramping up exports of high-end products, which will help lower the per-unit manufacturing cost through scale.

Executives flagged strong demand for high-end products such as OLED TVs, side-by-side refrigerators, inverter ACs, and front-load washing machines, not only in metros but also in Tier-2 and Tier-3 towns.

“Consumers in smaller cities are increasingly aspirational. They want the same premium products that were earlier restricted to metros, and we are working to make these more accessible,” Chitkara said.

"We want to make LG electronics a brand choice across all price point. So our idea is to take premium products to the masses.  We will have to down price it, instead we will improve the affordability of our product and we will take it to the masses and increase the access of premium product," he added.

The company plans to double its capacity across its plants over the next five years.  LG India currently has two operational manufacturing plants in Maharashtra and Uttar Pradesh and is constructing a third in Andhra Pradesh, which is expected to be operational by November 2026.

"Previously we were not manufacturing super premium products in India and we were manufacturing volume and mid-zone products but recently we started premium products production also like OLED TVs and side-by-side refrigerator because if you have to service the developed economies, their demand and consumption is more of premium products. So now we have already started manufacturing this and with this premium product export, it will also create an economy of scale for premium products for Indian consumers and it will reduce the fixed cost burden,"  Chitkara explained.