South Korean electronics giants Samsung and LG are reporting sustained growth in India. (Image courtesy of Samsung Electronics)
SEOUL, March 3 (Korea Bizwire) — South Korean electronics giants Samsung and LG are reporting sustained growth in India, as both companies intensify their focus on the country’s vast domestic market potential and skilled workforce.
According to Samsung Electronics’ latest audit report, its Indian subsidiary recorded sales of 17.05 trillion won and net profit of 1.41 trillion won last year, marking increases of 12% and 22% respectively from the previous year. The net profit has nearly tripled since 2022, when it stood at 508.5 billion won.
The surge in profitability is attributed to India’s large population of consumers in their 20s and 30s, a growing middle class, and increasing demand for premium smartphones and home appliances. Market research firm Counterpoint Research reported that India’s smartphone market approached 153 million units in shipments last year, with revenue reaching an all-time high, up 9% year-over-year, driven by premium device sales.
While Samsung ranked third in India’s smartphone market share, trailing the top two manufacturers by only one to three percentage points, the company has strengthened its presence in the premium segment with devices like the Galaxy S series. Samsung also claimed the top spot in India’s TV market with a 16% share in the first quarter of last year, showing 40% growth from the previous year.
Industry experts note that India’s home appliance market, currently undersaturated in products like refrigerators, washing machines, and air conditioners, shows significant growth potential. The Korea Trade-Investment Promotion Agency (KOTRA) projects the market will expand from $11 billion in 2019 to $21 billion this year.
Both companies are expanding their Indian operations. Samsung, which entered India in 1995, operates manufacturing facilities in Noida and Sriperumbudur, employing about 18,000 people across various divisions including R&D centers and design facilities. The company has also launched India-specific products, such as refrigerators designed for curd storage, a staple in Indian households.
LG Electronics has seen its Indian subsidiary’s sales grow 33.6% over five years, reaching 3.3 trillion won in 2023, with a net profit of 331.8 billion won. The company is constructing its third Indian factory in Andhra Pradesh, scheduled to begin operations in late 2026, and is pursuing an IPO expected in the first half of this year. Industry sources suggest LG aims to raise $1-1.5 billion through the IPO, with the Indian subsidiary valued at approximately $15 billion.
“We are pursuing this IPO because we see the potential in the Indian market,” LG CEO Cho Joo-wan said at CES 2025 in January. “We want to become a truly beloved national brand in India.”
Kevin Lee (kevinlee@koreabizwire.com)
