LG India bets on exports, B2B products to boost margins

LG Electronics India is betting on exports and business-to-business (B2B) products as key growth engines, as its Korean parent aims to turn India into a global manufacturing hub. The company's chief accounting officer Atul Khanna told shareholders at its first annual general meeting since listing that exports contributed 6% to total sales last fiscal year, but the firm has expanded its export footprint to 50 countries including Southeast Asia, the Middle East, Africa and developed markets.

The company is also targeting B2B segments such as system air conditioners, commercial displays and IT products, which offer relatively better margins. Co-chief of marketing and sales Sanjay Chitkara said the recently launched Essential series of mass-market products will be exported to 22 countries by end of this calendar year. LG's Rs 5,000 crore manufacturing plant at Sri City in Andhra Pradesh is expected to begin first phase production by end of this year, initially serving southern markets before focusing on exports.