LG electronics India expects its B2B segment to contribute half of its revenue in the next 10 years as the company strengthens its presence in the channel.
According to a PTI report: LG electronics India (LGEI) has plans to add more products into the B2B segment in the coming years besides strengthening its present line of display solutions and chillers and VRV for industrial and commercial cooling.
Besides, LGEI a wholly-owned subsidiary of South Korea- based LG Electronics, is checking feasibility for its solar energy based products.
“Presently B2B is at a nascent stage and we are growing consistently. Our idea is to make it parallel to B2C. In next 10 years, our B2B and B2C would have 50:50 ratio,” Managing Director, LG Electronics India, Ki Wan Kim told PTI.
Right now, B2B contributes around 10 per cent in LG Electronics India’s total fold. Last year, LGEI clocked sales of Rs 22,000 crore.
The company is also sensing a good opportunity in the Modi government’s plan to develop 100 smart cities for its B2B segment and is participating indirectly through the various consortium.
“We are the technology partners of the consortium bidding for the projects. We have solutions and devices for that. We are not a bidder but a part of that (consortium) as technology partner,” Business Head India (B2B Business Head), LG, Hemendu Sinha told PTI.
LGEI is also planning to introduce its range of solar products in India and is working on it.
“We offer premium products in solar business. Prices are little high but quality is good. Currently, we are focusing on the US, Japan and Korea but to enter India we have to improve our cost competitiveness. We are preparing for that,” Kim said.
Moreover, LGEI is also looking at the real estate to be one of its growth drivers for the B2B segment and is scouting for more alliances with the real estate developers to place its range of appliances, cooling products in their luxury flats.
“It is at initial stage now and we see a huge potential in that. In next 10 years, it could be big one. Already, some builders like DLF are using LG Kitchen system,” Kim further told PTI.
According to Sinha, the company is already in talks with several real estate developers to give a push to this segment.
“It’s just the beginning and as time passes by, it would become a big one,” Sinha was further quoted by PTI as saying.
To strengthen its display solution business, LGEI today introduced an innovative Signage, made by using 70 custom-made curved OLED panels.
This innovative Signage display is conceptualised and executed by HS Ad India in collaboration with LG Electronics, LG CNS and key Ambience Group Associates.