LG Electronics said on Wednesday it is targeting KRW 100 trillion (approx. Rs. 6,33,791 crore) in sales by 2030 and is planning another KRW 50 trillion (approx. Rs. 3,19,007 crore) as the South Korean company announced its future strategy.
It plans to become the world’s top 10 automotive company with revenue doubling to KRW 20 trillion (approximately Rs. 1,27,595 crore) by 2030, while promoting service platforms for its home appliances and TVs that generate recurring profits, such as such as media subscriptions and rentals.
“LG Electronics will transform its business… to increase profitability by growing in business-to-business, and transitioning to a service business,” CEO William Cho told a press conference.
“We will not rest on our past successes in home appliances.”
LG also plans to enter new markets such as electric vehicle charging and digital healthcare.
In order to achieve its goals, LG said it will seriously consider growth strategies such as joint ventures, mergers and acquisitions.
LG said it aims to achieve a profit of 7 percent by 2030.
In 2022, LG reported KRW 65 trillion (about Rs. 4,14,761 crore) in consolidated sales excluding its subsidiary LG Innotek, which makes components such as camera modules for smartphones.
LG said it expects the planned return of its fast-growing Vehicle Solutions division, the company’s new business unit, to reach KRW 100 trillion (about Rs. 6,38,323 crore) by the end of the year, with the investment spread over several years.
That could top KRW 80 trillion ($61.72 billion) by the end of March, according to a report by eBest Investment & Securities on Monday.
Vehicle Component Solutions, which also makes infotainment systems and lights, turned a profit last year and reported KRW 2.4 trillion (about Rs. 15,317 crore) in sales in the January-March quarter.
On Friday, LG Electronics said its second-quarter operating profit rose 12.7 percent from a year ago to KRW 892.7 billion (about Rs. 5,697 crore), its second-highest profit for the April-June period.
The only time LG announced a second big profit was in 2021.
© Thomson Reuters 2023