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LG India leans on premium products as costs rise
LG India says some of its costs are rising.
Instead of immediately increasing prices again, it wants to sell more premium products and operate more efficiently.
The company has already raised prices twice.
It may still adjust prices for individual product categories if costs stay high.
LG’s sales grew 15.5% in the first quarter of FY27.
Bigger televisions grew especially quickly.
The company expects strong festive-season demand for appliances and electronics.
It is also expanding online sales, financing offers and products for smaller cities.
A new factory in Andhra Pradesh is expected to start making appliances in 2026.
LG India plans to absorb higher input costs through premium products and operational efficiencies before raising prices again.
The company has already implemented two price increases and may take category-specific pricing decisions if costs remain elevated.
LG India reported 15.5% revenue growth in the first quarter of FY27, with double-digit growth across all categories.
Its 55-inch-plus television segment grew 53%, outpacing approximately 25% growth in the overall television market.
LG’s Sri City plant is expected to begin production by December 2026, initially making air conditioners.
- Who
- LG India and Sanjay Chitkara, the company’s Director and Co-Chief Sales and Marketing Officer.
- What
- LG India is responding to higher input costs by emphasizing premium products, operational efficiencies and selective pricing decisions.
- Where
- LG India operates across India and is building a plant at Sri City in Andhra Pradesh.
- When
- The comments came ahead of the festive season; the Sri City plant is expected to begin production by December 2026.
- Why
- The company aims to protect profitability while keeping products affordable as input costs, currency movements and competition remain under review.
Key facts
- Recent revenue growth
- 15.5% in the first quarter of FY27
- Price increases
- LG India has already implemented two price increases
- Large-TV growth
- The 55-inch-plus television segment grew 53%
- Overall TV market growth
- Approximately 25%
- Online sales share
- E-commerce accounts for around 15% of LG’s sales
- Sri City investment
- The plant represents an investment of Rs 5,000 crore
- Essential Series sales
- LG sold 5.5 lakh units between January and June and expects to exceed one million units by year-end
Quotes
Sanjay Chitkara
Director and Co-Chief Sales and Marketing Officer at LG India
“Before a direct price increase, we will work hard on improving the premium mix, improving operational efficiencies.”
financialexpress.com
“Premium is growing much faster than volume.”
financialexpress.com
Sources
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