LG Electronics India IPO Overview

Company Overview:

Established in 1997, LG Electronics India Pvt. Ltd. is a wholly owned subsidiary of LG Corporation, the South Korean multinational conglomerate. The company is a leading manufacturer and distributor of home appliances and consumer electronics in India. Its product portfolio includes refrigerators, washing machines, air conditioners, televisions, microwave ovens, and other household electronics catering to both B2C and B2B markets.

The company operates through two key business segments:

1. Home Appliances and Air Solutions (H&A)

2. Home Entertainment (HE)

Business Operations:

A) Manufacturing:

The company has two state-of-the-art facilities in Noida (Uttar Pradesh) and Pune (Maharashtra). Around 97–98% of total products are locally manufactured, aligning with the “Make in India” initiative and ensuring better cost efficiency and supply chain resilience.

B) Distribution & Service Network:

1. 25 warehouses (central and regional distribution centers)

2. 949 service centers and 12,590 service engineers

3. 31,291 sub-dealers and 36,000+ B2C touchpoints as of June 30, 2024

C) B2B Network:

Supported by 472 B2B trade partners catering to institutional clients, hospitality, real estate, and corporate sectors.

D) Parent Company Support:

Backed by LG Corporation’s global R&D ecosystem, technological leadership, and supply chain integration, the company benefits from shared innovation while retaining a strong local operational base. LG Electronics IPO: Key Details

• IPO Dates: 7 – 9 Oct 2025

• Price Band: ₹1080 to ₹1140 per share

• Lot Size: 13 Shares

• Total Issue Size: ₹11,607 Cr

• Retail Quota: 50%

• GMP (for reference only): ~22%

Allotment Link

Strengths:

1. Global Brand Backing: Supported by LG Corporation’s extensive global expertise, brand equity, and technology leadership, LG Electronics India benefits from advanced innovation, design, and R&D capabilities.

2. Market Leadership: Maintained the 1st market position in major appliances for 13 consecutive years, demonstrating strong brand dominance and consumer trust across multiple product categories.

3. Extensive Distribution & Service Network: One of India’s most comprehensive networks ensures deeper market penetration, faster service delivery, and stronger customer relationships—an important competitive advantage in the consumer durables sector.

4. High Local Manufacturing Capabilities: With 97–98% of its products made in India, the company enjoys better cost efficiency, reduced import dependency, and faster product rollouts.

5. Strong Brand Loyalty & Customer Trust: High-quality products, consistent innovation, and excellent after-sales service have fostered strong repeat purchase behavior and customer retention.

6. Operational Efficiency & Consistent Profitability: The company follows a capital-efficient business model with strong working capital management and steady profitability, reflecting robust financial discipline.

7. Focus on Innovation & Sustainability: Constant investment in energy-efficient, eco-friendly, and smart products aligns with consumer trends and government initiatives promoting green technologies.

Risks & Challenges:

1. Intense Market Competition: Faces stiff competition from global and domestic players such as Samsung, Whirlpool, Panasonic, Haier, and Voltas, which could impact pricing power and market share.

2. Urban Market Saturation: Major metros and Tier-1 cities are approaching saturation in core product categories, limiting volume growth. Future expansion will depend on deeper rural and Tier-2/3 market penetration.

3. Rapid Technological Changes: Continuous innovation is critical to remain competitive in a fast-evolving tech environment. Any delay in adapting to emerging technologies (IoT, AI-enabled appliances, energy efficiency) could affect growth prospects.

4. Dependence on Raw Material Prices & Supply Chain Stability: Fluctuations in global raw material prices or disruptions in the supply chain could affect margins and operational efficiency.

5. Regulatory and Environmental Compliance Risks: Tightening energy-efficiency norms, e-waste regulations, and environmental standards could increase compliance costs.

6. Foreign Exchange & Geopolitical Exposure: Although largely localized, some components and technology imports expose the company to currency fluctuation and global trade risks.

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matters published here are purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. Any reader making decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in the stock market is subject to unpredictable market-related risks. The author has no plans to invest in this offer and also the author does not recommend investing in any offer published on this website.