LG Group Chairman Koo Kwang-mo recently visited India as part of the group's crown jewel, LG Electronics' efforts to explore future growth strategies and expand market presence in the region.

His trip came as LG Electronics prepares for the IPO of its Indian unit this year, valued at approximately $15 billion, in a bid to tap into the bustling Indian capital market.

According to LG Group on Tuesday, Koo spent four days in India from Feb. 24, visiting the cities of Bengaluru, known as the “Silicon Valley of India,” and capital New Delhi. During his trip, Koo assessed LG’s value chain in the country, from research and development to production and distribution, while meeting with local employees.

Koo’s first stop was LG Electronics' Noida plant, where the company manufactures home appliances, including refrigerators, washing machines and air conditioners.

“The next few years are critical in determining how we can differentiate ourselves and stay ahead of competitors in the India market. Now is the golden time to secure sustainable leadership,” Koo was quoted as saying. “Based on our accumulated understanding of customers and our solid market position, let’s make a leap forward for the next 30 years.”

Koo inspected the production lines for home appliances and urged local employees to develop and implement a strategy to distinguish LG from Chinese competitors to maintain its top position in the market.

He also visited LG brand shops and local retailers to gain insight into customer preferences and emphasized the importance of offering differentiated customer value.

In Bengaluru, Koo visited LG Soft India, LG Electronics’ R&D center, to evaluate India’s competitiveness and potential as the company’s global R&D hub.

"India’s role in responding to rapid innovations in software technology and securing top-tier R&D talents will become even more critical,” Koo told researchers there.

LG Soft India is one of the largest R&D institutes among LG’s overseas research facilities, alongside its Vietnam affiliate. In India, LG has around 2,000 local developers to develop the webOS platform, vehicle solutions and next-generation software.

LG Group made inroads into the Indian market in 1996 with the establishment of LG Soft India, which will marks its 30th anniversary next year. Since then, the group’s key affiliates have expanded their presence, including LG Chem in 1996, LG Electronics in 1997 and LG Energy Solution in 2023.

LG Electronics currently operates two manufacturing facilities in India, including in Noida, which was established in 1997, and also in Pune, which was added in 2004. The company is considering setting up a new plant in the southeastern Andhra Pradesh region to boost its manufacturing capacity in the country.

After visiting India, Koo flew to Dubai to assess business operations in the Middle East and Africa and discussed long-term strategies.

“The Middle East and Africa region presents both challenges and significant growth opportunities,” Koo was quoted as saying. “We must adopt a strategically sophisticated approach to establish this region as a key pillar of LG’s future growth.”

Since entering the region in 1982 in Dubai, LG operates 12 subsidiaries for sales, production and services across the Middle East and Africa.

By Ahn Sung-mi (sahn@heraldcorp.com)