LG might be struggling with its smartphones right now but is winning in every other way possible. India is its biggest market when it comes to white goods. It has managed to outlast and out-compete everyone in that sector. In spite of losing a lot of market share due to its mega fall in the smartphone business, LG did not let it affect its other businesses. They did not derail because one of their businesses was struggling. That is when you know a company has a good base. LG has a lot of businesses and their white goods business is the major business but they also have subsidiaries which make vehicle spare part. It has a different wing for Artificial Intelligence, it is also a working company in Life Sciences. Apart from this, they develop a lot of mobile communication equipment. These are just some of the dozen other businesses they have.
LG Electronics India is one of the most profitable branches of a foreign company in India. It has, as mentioned before, netted profit in every subsection of the white goods market. They have successfully transitioned to GST without any setbacks instead, the company’s sales grew in every sector. In spite of incurring a huge amount of losses in smartphones in the last couple of years, they have nulled it by flourishing in the white goods business.
The numbers are outrageous, to say the least. They have sold more number of refrigerators than any other company, they have sold the highest number of washing machines, and in the television market, they are only second by a whisker. The revenues they have collected individually from these sectors are insanely high. The income cannot be compared to last year as GST was introduced halfway into the Financial Year of 2017. However, LG Electronics India has netted a profit of over INR 1454.2 Cr. That is also where the company is leading. The FY18 revenue can be calculated to almost INR 16,059 Cr. As mentioned it cannot be compared with the revenue generated in FY17. However, the total excise duty LG recovered in FY17 was about INR 1,565.3 Cr.
That said, the segregation of all that profit was mentioned in revenues by Economic Times. The ET mentioned that the air-conditioner segment of the company posted revenue of INR 10,903 Cr. This is absolutely ridiculous as it is not even the largest AC selling company in India. However, the revenue generated from TV’s and other theatre divisions was lesser than that of air conditioners. INR 4,546 Cr was the revenue generated by the TV and theatre divisions of LG. If we consider the market share, LG is the leader in almost all the white goods. It leads in refrigerators, washing machines, microwave ovens, and is second in televisions and air conditioners. This also has a lot to do with the growth of the consumer electronics industry. It grew approximately by 5-6% since the last financial year.
– Unmesh Phule