LG Electronics Inc., the world’s largest home appliance maker, posted first-half sales in India of over 2 trillion won ($1.5 billion) for the first time since opening its doors in the South Asian country three decades ago.

For the full year 2024, the company looks set to post record revenue from its Indian operations, which would give new momentum to the plan to list the Indian unit on the local stock exchange, raising an estimated $500 million.

LG Electronics India’s sales in the first six months of this year totaled 2.1 trillion won ($1.5 billion), up 15 percent from a year earlier, according to its half-year financial report released last week.

The Indian subsidiary’s net profit reached 198.2 billion won, the highest ever for a six-month period, compared with 155.3 billion won a year earlier.

In the second quarter ended June, LG Electronics reported its highest quarterly operating profit of 1.2 trillion won on record sales of 21.7 trillion won.

LG has used a localization strategy to strengthen its position as a premium home appliance brand in the world’s most populous country.

Since establishing an independent subsidiary in 1997, LG has established its own research and development, manufacturing and sales units in India. The company offers delivery, installation, maintenance and repair services tailored to the local market.

Home appliances such as televisions and air conditioners still account for a large portion of sales in India, but LG is leaning towards business-to-business services such as interactive whiteboards and heating, ventilation and air conditioning (HVAC) systems, which are becoming its new growth engines.

It operates Business Innovation Centers (BICs) in Noida, Mumbai, Bengaluru and Chennai to market B2B products such as HVAC, where it maintains showrooms and offers personalized customer service.

To develop India as a global manufacturing center, LG has invested 30 billion won in 2023 to expand production lines at its Pune plant.

According to industry observer Omdia, LG dominated the Indian air conditioner market with 31% in 2023 as number one. The company also controlled 64.2% of its OLED TV market.

With the increasing number of small families and working women, India offers great growth potential for household goods manufacturers.

Television penetration remains at 72%. For refrigerators, washing machines and air conditioners, penetration rates are only 38%, 17% and 8% respectively.

According to the Korea Trade-Investment Promotion Agency (KOTRA), the Indian home appliances market is expected to almost double by 2025, reaching $21 billion (compared to $1.1 billion in 2018).

During a conference call last month, LG said it was considering listing its Indian unit on the Indian stock exchange, but had not yet made a decision.

Write to Chae-Yeon Kim at [email protected]

Yeonhee Kim edited this article