LG Electronics chief calls for action to stay No. 1 in India
LG Chairman Koo Kwang-mo paid a visit to India to inspect LG Electronics' local operations, recognizing the country's strategic significance amid geopolitical friction flaring up around the world.
The electronics giant also expects an estimated $1.8 billion initial public offering (IPO) on the Indian bourse in the first half of the year.
During the five-day trip that he set off for on Feb. 24, Koo toured LG Electronics’ manufacturing facilities and research and development (R&D) center as well as retail operations located in the capital city of New Delhi and Bengaluru, known as the local equivalent of Silicon Valley in the United States.
“Now is the golden time to sustain our No. 1 position in India,” said Koo.
LG Electronics is known to be the top player in TVs, refrigerators, washing machines and air conditioners in India.
“The next few years are crucial in determining what differentiated strategy LG will take in India to have a leading edge over our competitors. Let’s leap toward another 30 years based on the accumulated understanding of our customers and solid market position.”
Koo requested that a strategy be devised to differentiate the company from Chinese players after touring LG Electronics’ local refrigerator, washing machine and air conditioner manufacturing lines, calling for implementation.
LG Electronics expects a third manufacturing facility in Andhra Pradesh to meet growing market demand at an unspecified time, on top of the existing two in Noida and Pune.
The chairman emphasized the importance of leveraging the country’s IT prowess when visiting its local R&D center located in Bengaluru.
The center, dubbed LG Soft India, is one of the biggest among the company’s overseas R&D centers, along with the one in Vietnam, the company said.
Wth some 2,000 local engineers, the center focuses on developing a webOS platform, vehicle solutions and next-generation software. It opened its doors in 1996 and will celebrate its 30th anniversary next year.
“India’s role and importance will only grow in terms of responding to accelerating software technology development and securing R&D talent,” Koo said to the engineers.
“It is important to set a target at a global R&D level and to have determination to achieve it for future competitiveness in R&D.”
IT accounts for seven percent of India’s GDP. With a pool of software engineers numbering some 5 million, India is home to the R&D hubs of major tech companies like Google, Microsoft and Apple.
LG's aggressive foray into India derives from the country's strategic autonomy amid global trade tensions between the United States and China while also holding significant growth potentials.
India is the world's most populous country at 1.4 billion people, 43 percent of whom are under the age of 25 ? a demographic seen as a market growth driver ? and also holds the potential to rise from the world's fifth-largest economy to rank third, according to international rating firm S&P.
The Korean firm's other affiliates are also making efforts in the country.
LG Chem starts operations at its new Indian manufacturing facilities this year, and LG Energy Solution is drafting a detailed strategy to secure a leading edge in the still-fledgling EV market in India.