The home appliances division of LG Electronics India targets a Rs 1,800 crore net revenue from its washing machine category by this calendar year.
"We expect to achieve Rs 6,000 crore net revenue by this calendar year from its home appliances division, a growth of 18% over last year, including Rs 1,800 crore from the washing machine category," said Rajiv Jain, business head (home appliances), LG Electronics India Private Limited, the wholly-owned subsidiary of LG Electronics.
Currently, the washing machine market in India is estimated to be about 30% of the total Rs 16,000-crore home appliances market, which is of about Rs 5,000 crore.
"The home appliances market has been sluggish this year and certain segments including the double-door refrigerator and microwave oven have seen degrowth, whereas the washing machine market in India is seeing a double digit growth of about 18%," he said.
"The washing machine market is expected to retain its growth in the coming years with the growing penetration level in the country," he said. The penetration level for this category has grown to 7% this year from 5.5% last year.
The company expects a good growth coming from the front loading washing machine category.
"Currently, the front loading washing machine category contributes 10% of the overall washing machine market in the country, which is very low compared to the developed countries. This category contributes about 70% in developed countries like US and Europe. We expect this segment to grow in India in the coming years," Jain told Business Standard.
"We are hopeful to retain our 37% market share in home appliances with a shifting focus on more high-end premium products," Jain said. LG currently have 32 SKUs (stock keeping units) in the washing machines in India. It has 38% market share in washing machine and 34% share in front loading category.
Of LG India's total revenue, refrigerator category contributes 60%, and washing machine and cook and clean segment contribute about 30% and 10% respectively.