LG targets $75B revenue by 2030, considers Indian IPO
LG Electronics, a leading South Korean tech firm, is contemplating an initial public offering (IPO) for its Indian division. The move is part of the company's strategy to achieve a revenue target of $75 billion by 2030. This potential stock market debut in India, marks a significant shift in LG's approach toward revitalizing its long-standing consumer electronics business.
CEO discusses potential IPO and revenue goals
LG's CEO, William Cho, has confirmed that an IPO in India is among several strategies under consideration to boost the company's electronics business. The goal is to reach an annual revenue of 100 trillion won ($75 billion) by 2030. This ambitious target represents a significant increase from the firm's total revenue of about $65 billion in 2023.
LG's growth strategy and performance in India
LG aims to increase its earnings from enterprise clients, with a target of generating approximately 45% of sales from other firms by the end of this decade. This is a significant rise from the current figure of 35%. In India, LG has experienced substantial growth with revenue for its unit in the country, increasing by 14% to a record 2.87 trillion won in H1 2024.
New business ventures and subscription service expansion
Cho is also focusing on developing new businesses that could each generate over 1 trillion won of annual revenue. One such venture is in the heating, ventilation, and air-conditioning (HVAC) sector where LG operates 11 production sites worldwide. Additionally, LG is expanding its home appliance subscription service beyond Korea, to other countries including Malaysia, Thailand, Taiwan, and potentially India later this year.
LG to invest in webOS-based advertising business
LG is planning a significant investment of 1 trillion won by 2027 to expand its webOS-based advertising and content business. The expansion plan includes offering free ad-supported streaming services, further demonstrating LG's commitment to innovation and customer satisfaction.
