LG Electronics India is eyeing a growth over 30 per cent in 2022 in the home appliances segment backed by strong growth in the cooling products in the first half of the year and its new line-up of products, including smart products backed by AI technology. The South Korean major had clocked revenues of about ₹15,000 crore in 2021 in the home appliance segment, which includes air-conditioners, refrigerators, washing machines, microwaves, dishwashers and water purifiers.
Deepak Bansal, Vice-President - Home Appliances and Air-Conditioners, LG Electronics, India told BusinessLine, ”We clocked a growth of 20 per cent, higher than the market growth rate, in 2021 in the home appliances segment as consumers focused on upgrading to premium products and bigger capacities. In 2022, our goal is to grow over 30 per cent and expand our market share in the overall appliance segment. This will be supported by strong growth in compressor products in the first half of the year and our new comprehensive line-up of over 270 models across categories.”
Pent-up demand
The company said it witnessed a strong double-digit growth in the March quarter and anticipates even higher growth in the June quarter, thanks to pent-up demand for air-conditioners and refrigerators. “We are witnessing an unprecedented demand for ACs. If the heat wave continues, demand may surpass supplies and there could be some shortages. For now, we are leveraging our global expertise to manage the supply chain to cater to consumer demand. In the AC segment alone, we expect to clock 20-25 per cent growth over pre-pandemic levels,” Bansal added.
Asked about price hikes in response to inflationary pressures, he said, “We had a price hike of 7-8 per cent in the first quarter. We have not yet made up our mind in terms of any further price increase. We are closely monitoring the situation, as the increase in raw material costs have been unprecedented.”
New product line-up
The consumer products major on Thursday launched the new line-up for 2022, which includes Instaview door-in-door and frost-free refrigerators, AI Direct Drive washing machines, Dual Inverter air-conditioners, wearable air-purifiers, UV+UF water purifiers and a new range of charcoal microwaves.
“Our new line-up is based on key consumer insights, as they increasingly seek design and convenience-led products that simplify their lives. This includes products with AI LG ThinQ Technology, which aims to make machines intelligent and adds comfort and convenience to the consumer’s daily life. We are working on ensuring the AI technology is made more approachable and offered across a wider range of models and categories,” Bansal added.