An artist’s rendering of LG Electronics’ new home appliance plant under construction in Parana, Brazil / Courtesy of LG Electronics
LG Electronics announced a goal of doubling its sales in the global south by 2030, driven by business strategies tailored to key markets including Brazil, India and Saudi Arabia.
The company said Sunday that its combined revenue in Brazil, India and Saudi Arabia stood at 6.2 trillion won ($4.28 billion) last year, up more than 20 percent from that of 2023.
The figure is more than double the company’s overall revenue growth during the same period, demonstrating the strong growth momentum in the emerging markets.
LG Electronics said it will double the revenue from the countries by 2030, in a view that those high-potential markets can propel the company’s mid- to long-term growth and diversify its portfolio that has been centered on advanced markets such as Korea, North America and Europe.
Brazil is the world’s 11th-largest economy, with purchasing power improving due to government policies aimed at supporting low-income households.
LG Electronics plans to step up its push into the market by expanding its local production bases.
The company is in the final phase of constructing a 70,000-square-meter home appliance plant in Parana, a key state in southern Brazil, with the goal of beginning commercial operations within this year.
Under the $200 million project, the plant will produce premium and locally tailored products, so that it can secure cost competitiveness in response to rising local demand.
It will also serve as a production hub for exports to neighboring countries. Combined with the production capacity of LG Electronics’ existing plant in Amazonas state, the company’s total annual output will rise to 7.2 million units, positioning Brazil as a strategic foothold for expansion into the South American market.
In India, the company plans to increase its market share by offering locally tailored products. In particular, it seeks to target the market with washing machines capable of stable water supply even under low water pressure, air conditioners designed to operate in temperatures of up to 55 degrees Celsius and refrigerators tailored to the needs of the country’s large vegetarian population.
In Saudi Arabia, the company is focusing on partnerships with local firms. LG Electronics entered the market in 1995 through a partnership with Shaker, the country’s largest home appliance distributor, and has maintained close cooperation for more than three decades. The two companies have also been jointly conducting research and development on region-specific technologies, including heating, ventilation and air conditioning systems optimized for extreme heat conditions.
