LG India will look to absorb further input cost pressures through a richer premium product mix and operational efficiencies to avoid another round of price hikes, Sanjay Chitkara, Director and Co-Chief Sales and Marketing Officer, LG India, said.
The consumer durables major, which has already taken two price increases, will take a calibrated, category-specific call on pricing if costs remain elevated, while balancing profitability with consumer affordability.
Speaking to FE, Chitkara said: “Before a direct price increase, we will work hard on improving the premium mix, improving operational efficiencies.” The company is currently monitoring input costs, currency movements and the competitive environment before deciding on any further pricing action.
The approach comes as LG enters the festive season with strong momentum. The company registered 15.5% revenue growth in the first quarter of FY27 despite a challenging external environment, while also improving margins. Chitkara said the growth was broad-based, with all categories registering double-digit growth.
Premiumisation, in particular, is driving value growth. “Premium is growing much faster than volume,” Chitkara said. LG’s 55-inch-plus television segment grew 53%, compared with around 25% growth in the overall TV market, he said, pointing to a shift towards higher-value products.
LG Electronics’ Rs 5,000-crore Sri City plant in Andhra Pradesh is expected to start production by December 2026, initially making air conditioners, followed by compressors, refrigerators and washing machines, Chitkara said.
He also said the successful implementation of GST rationalisation has improved affordability for consumers.
The company expects demand to remain broad-based through Diwali. Television and washing machines were among the fastest-growing categories in the first quarter, while refrigerators also recorded double-digit growth for the company.
Chitkara expects categories such as microwave ovens, audio products, party speakers and soundbars to also see a seasonal pick-up during the upcoming festival season as consumers renovate homes, move into new houses and upgrade appliances.
The company is also seeing a gradual shift in its channel mix. E-commerce now accounts for around 15% of LG’s sales, with Chitkara saying there is still “a lot of headroom” for online growth. However, the company continues to follow an omni-channel approach rather than prioritising online over offline, with consumers discovering products online, experiencing them in stores and purchasing through their preferred channel.
Quick commerce remains at an early stage for LG’s appliance business. Chitkara said the company is currently running pilots in select metros, given that most of its products require installation and coordination between delivery and installation teams. “It is just a beginning only,” he said, adding that there is still significant potential in already established channels.
In non-metros, LG is pushing its “Essential Series”, developed to bring a premium experience to tier-II and tier-III markets at more affordable prices. The company sold 5.5 lakh units of the appliances between January and June and expects to cross one million units by the end of the year.
For the festive season, LG is relying on financing schemes alongside product launches rather than depending only on discounts. The company is offering 12-month zero-buydown, zero-processing-fee and zero-dealer-buydown schemes, along with zero-interest 36-month EMI options and fixed EMIs. Credit-card cashback offers will also be part of the offering.
The company launched a new range of Semi-Automatic Washing Machines comprising 15 models across 8 kg to 12 kg capacities on Tuesday.