LG Rewires strategy before hitting Switch iPo, and Brandente

Before his public question scheduled for the end of the year, the largest manufacturer of appliances in India, LG Electronics, began to strengthen the belt in front of a drop in revenue in the first half of the 2025 calendar.Costs started, with LG in the process of reducing the number of sales promoters in the shop in the stores and a message to the sales team to perform or leave, three managers in the sector have affirmed the developments.

Sales have undergone success due to a colder summer and a total consumption collapse, which influenced demand in categories such as air conditioners, refrigerators and televisions. Last year record sales also meant that the base was high, affects the comparisons.

While a weak demand in the market has damaged all companies in these segments, LG India is also under pressure to present a robust balance in view of the next initial public offer to guarantee a good response to investors, said the managers of the sector.The sales of AC of LG India have decreased by 15-20% so far in the January-June period of this year compared to last year, they said. Sales in other categories are largely flat.

Since ACS and refrigerators are sales drivers in the first half for the company, the overall sales collapsed by two figures compared to last year.

“There is the fear that a poor growth in sales and profit can affect the feeling of investors in view of the IPO,” said one of the managers.

In response to an e -mail in search of comments, a spokesman for LG India has declared from January to April, the company has improved its leadership market share through its product portfolio. “This is a strong testimony of our continuous leadership in the category and reflects a strong market trust in us,” he said.The spokesman said that there was no reduction in the number of sales promoters starting from date. The company is focusing on the optimization of the productivity of sales promoters by moving high -performance promoters in high -performance stores, he added.

The managers of the sector said that there were 4-5 exits of branches at the level of branch and regional, such as the branches and regional managers in the East, between the pressures for a better sales performance and a more streamlined cost structure. The company did not comment on the decline in sales and outputs of the sales team.

Sales review meetings often extend until late at night. Two managers in rival companies have declared that they were flooded with curriculums of lg managers.

The expected ipo of ’15, 000 000 for the Indian unit was originally scheduled for the April-May period, but was postponed due to volatility in the stock market and an uncertain macroeconomic panorama.

The company has now targeted October-November for the IPO and wishes to present a draft red education magazine (DRHP) by July-August with updated funding, said a person aware of the plans. The South Korean parent of LG wants to dilute about 15% of his participation in the Indian unit.

The LG spokesman said he continues to be a market leader in India among the categories in the period from January to April, including products such as refrigerators, washing machines, microwave ovens and televisions. It works with Samsung, Haier, Whirlpool, Godrej and Voltas.

To tell the truth, the temperatures lower than the normal and the intermittent rains in this year’s summer season have influenced the sales of all the producers of CA, including Voltas, Blue Star, Daikin and Lloyd, with the volume of the sales of the sector down by 50-60% compared to last year in which there have been record sales and intense heat wave conditions.

The industry provided for a growth of 10-15% of sales according to the initial predictions of the meteorological office for the intense heat this summer.

Since retail stores are still saddened with invented shares, primary sales (from retail companies) for all companies are immersed in the April-June period. The companies have reduced the production of AC and refrigerator to face the situation, the managers of the sector said.

“The pressure of sales performance is higher in Korean companies such as LG and Samsung. In the case of LG India, the dip in sales was marked by the headquarters while preparing for the IPO,” said the head of a rival company. “The company has devised a rigorous policy of carrots and sticks for its sales. There is also a strengthening of costs to improve profit to compensate for the loss of sale.”

The LG spokesman has declared that the company provides that the good Monsone positively affects macroeconomic growth throughout the country, which will probably have a positive impact on the sector in the coming months.