LG Elec CEO highlights “Made in India, Made for India” strategy in interview

Jeon Hong-ju, Managing Director of LG Electronics India. (YouTube Capture)

LG Electronics India Ltd. is standing out in India, a country considered challenging for foreign companies to succeed due to various hurdles.

Since its debut on the Indian stock market, the company’s stock price has surged, pushing its market capitalization to 1.12 trillion rupees ($12.49 billion) as of Friday.

This figure exceeds the market capitalization of its South Korean parent, LG Electronics Inc., which stands at about 14.9 trillion won ($10.14 billion).

The company also ranked top in market share across major home appliance categories such as washing machines and refrigerators in the first half of this year in India.

In a recent interview with Maeil Business Newspaper, LG Electronics India Chief Executive Officer (CEO) Jeon Hong-ju noted that the secret behind the company’s popularity in the local market is that “we have executed a Made in India, Made for India strategy under the core principle of thinking like an Indian.”

LG Electronics India’s locally tailored products embody that philosophy.

The company addressed barriers such as the social perception that using appliances like refrigerators – seen by some as lazy because they preserve food – was unnecessary, instead offering practical, lifestyle-oriented solutions.

“A good example is washing machines and dryers designed to address the problem of clothes not drying well because of high humidity during India’s rainy season, as well as microwave ovens customized for Indian cuisine,” Jeon said.

The momentum for this strategy came not only from operating production plants in the Noida and Pune regions of India but also from launching a program to foster local component suppliers and setting up a product research and development (R&D) team.

Through these initiatives, the company designed and produced new products that align with the usage habits of local consumers, taking into account factors such as India’s electricity conditions, water pressure and hardness, and food-storage practices.

The company also raised consumer satisfaction by introducing to the Indian market services that were naturally expected in the Korean market.

“We built a differentiated infrastructure such as 68 service-parts warehouses, rather than simply expanding service centers,” Jeon said. “Through AMC, a subscription model tailored to India, we are expanding our service reach not only in major cities but also in tier-3 and tier-4 cities and rural areas.”

Under these circumstances, LG Electronics India has been largely insulated from global protectionist policies that prioritize domestic industries.

It is currently accelerating policies to secure leadership in the Indian market, which is projected to grow at an annual average rate close to 7 percent through 2030.

“We are currently pursuing strategies to address the potential expansion of product demand, including the establishment of a third plant and increased investment in R&D,” Jeon said.