LG bets on exports, B2B products for margin boost

LG Electronics India is focusing on exports and business-to-business (B2B) products to boost its margins, amid rising profit pressures from raw material costs, currency depreciation and geopolitical risks. Atul Khanna, LG Electronics India's chief accounting officer, stated that the company's goal is to make India a global manufacturing hub. This strategy involves expanding its geographical presence to minimize dependency on any single region.

Currently, exports account for 6% of LG India's total sales, with a significant increase in distribution to 50 countries across Southeast Asia, the Middle East, Africa and some developed markets, including premium products like side-by-side refrigerators and large-capacity front-load washing machines.

In addition to expanding its export footprint, LG is also ramping up its B2B efforts in areas such as system air conditioners, commercial displays, IT products and enterprise solutions. Sanjay Chitkara, co-chief of marketing and sales, highlighted that this sector offers relatively better margins.

LG Electronics India's newly launched Essential series of mass-market products is set to reach 22 countries by year-end, further strengthening its global reach. The company's ₹5,000 crore manufacturing plant at Sri City, Andhra Pradesh, is anticipated to commence the first phase of production by year-end, initially targeting southern markets and later focusing on exports.