Las Vegas, Jan 09, 2025, IANS

Las Vegas, Jan 9 (IANS) LG Electronics’ CEO Cho Joo-wan has said that the huge business potential in the Indian market is what drove the company to pursue an initial public offering (IPO) in the country. "The planned IPO aims to capitalise on the expanding demand," Cho said during a press event at the Las Vegas Convention Center on the sidelines of CES 2025, reports Yonhap news agency. The Korean company filed a draft with the Indian bourse operator for an IPO of its Indian unit, LG Electronics India Ltd., in early December. The offering, anticipated in April or May, is expected to raise up to 2 trillion won ($1.3 billion). India's growing demand for consumer durables has fueled global big names' interest in IPOs. Hyundai Motor debuted on the Indian stock market last year, raising a record $3.3 billion. However, Cho emphasised that raising substantial capital is not the primary reason that LG Electronics has decided to go public in the Indian market. "Our planned IPO in India is driven by the Indian market's potential," he said. "Money comes next. The funds raised will be allocated to various purposes." Cho highlighted the significant growth opportunity in India, noting that a large portion of households still lack essential appliances, such as air conditioners, refrigerators, washing machines and TVs. "We want to fill their homes with LG Electronics products," he said. To support this expansion, Cho signalled the possibility of further investments in the country, according to the report. The company plans to recruit more local talent and increase its production capacity, Cho said. Currently, LG Electronics operates two factories in India.