The home appliances division of LG Electronics India is targeting net revenues of Rs 1,800 crore from its washing machine category by this calendar year.
“We expect to achieve Rs 6,000 crore net revenue by this calendar year from the home appliances division, a growth of 18 per cent 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.
The washing machine market in India is estimated to be about 30 per cent 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 had seen negative growth, he said, adding the washing machine market in India was, however, is seeing a double digit growth of about 18 per cent.
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 per cent this year from 5.5 per cent last year. The company expects good growth in the front loading category.
“The front loading washing machine category contributes 10 per cent to the overall washing machine market in the country. This category contributes about 70 per cent in developed countries like the US and Europe. We expect this segment to grow in India in the coming years,” Jain told Business Standard.
He said they were hopeful to retain 37 per cent market share in home appliances by shifting focus to more high-end premium products. Of LG India’s total revenue, refrigerator category contributes 60 per cent, while washing machine and cook and clean segments contribute about 30 per cent and 10 per cent respectively.