LG Electronics India IPO

The company is heavily dependent upon its Promoter, LG Electronics, for technology, product design, brand rights, and exports. LG Electronics owns 100% of the equity and receives a royalty of 2.30% of net sales for authorised products and 2.40% of net sales for LCD televisions and monitors under a perpetual license agreement. Termination or unfavourable change in this relation would impair manufacturing, branding, and sales operations, impacting heavily on revenue and reputation.

The company’s top-5 suppliers account for 22.08% and top-10 suppliers for 32.25% of total raw material purchases as of June 30, 2025. Additionally, 45.88% of raw materials are imported, largely from Korea (20.53%) and China (12.22%). Any supply disruptions, geopolitical tensions, or quality issues in these regions could affect production timelines and costs.

A major 78.37% of revenue was contributed by the Home Appliances and Air Solution business, comprising refrigerators, washing machines, air conditioners, and televisions as of June, 2025. Among these, refrigerators, washing machines, air conditioners, and TVs alone accounted for 34.59%, 18.48%, 20.40%, and 16.71% respectively. Any weakness in consumer demand, price competition, or disruption in this product category can have a material impact on revenue and margins.