After blockbuster IPO, what’s next for LG Electronics India? Plans to double India R&D staff, expand exports

South Korea’s LG Electronics plans to tap India’s software talent for developing semiconductors, robotics and artificial intelligence technologies, while expanding exports from the country by leveraging free trade agreements New Delhi is signing globally, Chief Executive William Cho said.

Speaking to The Economic Times, Cho said, “India is no longer a country with the best cost competitiveness, but rather a best capability country.”

“Both cost competitiveness and capabilities are co-existing — best cost for hardware and best capability for software,” he added.

LG, India’s largest home appliance and television maker, operates two manufacturing plants and is building a third in Andhra Pradesh with an investment of ₹5,001 crore. The new facility will produce refrigerators, washing machines, air conditioners and components.

Cho said LG aims to expand its manufacturing base in India, which he described as nearing an “inflection point” that could trigger explosive consumer demand for appliances.

He asserted that government initiatives such as production-linked incentives would aid those efforts.

The company also plans to double its Indian research and development workforce by 2027 from the current 500, as it builds capacity in chip design and robotics.

LG will use its experience in India to expand in other emerging markets across the Global South, which it has identified as its next growth frontier, Cho added.

The remarks came as LG Electronics India Ltd made a strong debut on Indian stock exchanges on Tuesday, with shares closing nearly 50% higher than the issue price of 1,140 rupees. The company’s market value stood at about ₹1.15 lakh crore.

The ₹11,607 crore initial public offering, fully an offer-for-sale by the South Korean parent of a 15% stake, was subscribed more than 54 times. It was the first listing by an LG unit globally and the second by a South Korean company in India, after Hyundai Motor India’s debut last year.

LG Electronics India is a leading player in major home appliances and consumer electronics. The company's products are sold to both B2C and B2B customers in India and abroad. It also provides installation, repair, and maintenance services for all its products.

The company manufactures and sells products, including washing machines, refrigerators, LED TV panels, inverter air conditioners, and microwaves. It has manufacturing units at Noida, Uttar Pradesh and Pune, Maharashtra.