LG Electronics India Ltd, one of India’s leading consumer electronics and home appliances companies, has unveiled a long-term growth roadmap under its “EXCEL” strategy to position India as a global manufacturing and export hub.
The company said EXCEL stands for export expansion, new factory production, expansion of market leadership and localisation, with all pillars already under implementation.
Exports positioned as key growth engine
Chief Financial Officer Dongmyung Seo said during earnings call that exports have been identified as the company’s core growth engine as they provide significant opportunities to improve profitability and overall margin performance.
Investor Relations Officer, Soonjoo Seo, said the company has already commenced exports of large-capacity refrigerators to advanced markets during the first quarter of FY27. Simultaneously, exports of its Essential Series products to neighbouring countries have also started.
Going forward, the company plans to expand export destinations and distributor networks, diversify the export product portfolio and strengthen export-focused infrastructure and dedicated teams.
“These efforts represent an important step in our journey to transform LG Electronics India into a true global export hub,” he said.
The company added that export growth would also provide a natural hedge against rupee depreciation and improve profitability through stronger cost competitiveness.
Localisation and Sri City expansion
Localization remains a central pillar of the company’s “Make in India” strategy. The localisation level has increased to 55.2%, improving by around 1.4% points year-on-year.
LG plans to improve localisation by 1-2 percentage points annually going forward to reduce import dependence, lower currency exposure and enhance cost efficiency.
The company is also expanding manufacturing capacity through its third factory at Sri City with a planned investment of ₹5,000 crore over the coming years.
Production of air-conditioner compressors is scheduled to begin in the third quarter of FY27, followed by air-conditioner production in the fourth quarter. Washing machine and refrigerator production lines will be added in phases later.
Chief Accounting Officer Atul Khanna said around ₹657 crore has already been deployed towards construction and machinery under capital work-in-progress and capital advances by FY26. The remaining capex over the next two years will be fully funded through internal accruals.
FY27 outlook remains strong
The company expects premium and mass-premium products, along with AMC and B2B businesses, to contribute a larger share of revenue and support margin expansion.
For FY27, LG is targeting mid-teen revenue growth and early double-digit EBITDA margins, supported by encouraging sales momentum in April and May, low appliance penetration in India and strong structural demand for home appliances.