LG ditches China, bets big on India for factory push
LG Electronics plans to relocate manufacturing of capital goods to India from plants in Korea, China and Vietnam. The equipment is used to build factories that make electronic products, displays and advanced components. The transition reflects the company’s effort to broaden its Indian manufacturing presence as businesses worldwide work to diversify their supply networks.
Separately, LG Corp will spend Rs 1,000 crore on a global research and development center in Noida that will employ about 500 people and concentrate on electronics and technology design innovation. The announcement follows strong market performance by LG Electronics India, whose shares jumped more than 50 percent during their debut last month. The listing valued the Indian unit at $13.07 billion, exceeding the South Korean parent company’s nearly $10 billion market value.
Brokerage houses Prabhudas Lilladher and Motilal Oswal assigned Buy ratings to the stock, citing the firm’s extensive distribution channels, premium market position and emphasis on profitable business lines. Analysts expect LG Electronics India to benefit from the domestic consumer electronics and appliances sector, which is forecast to expand at a 14 percent compound annual growth rate from 2024 through 2029.
