Source : PTI | LG Electronics India, a leading maker of appliances & consumer electronics, on Thursday announced that the company was diversifying into vehicle solutions business, marking its foray into the automotive and mobility technology segment.
The company will bring its South Korean parent’s global automotive business to the Indian market as it looks to expand its business portfolio.
“This initiative will bring LG Korea’s key global B2B automotive business, including automotive infotainment and telematics solutions, to India. These products will be manufactured and supplied from LGE India’s 3rd plant at Sri City, Andhra Pradesh,” said LG Electronics India in its earnings statement.
The new business activities may include automotive infotainment systems, in-vehicle displays, digital cockpit solutions, telematics and connectivity solutions, vehicle computing systems, cockpit domain controllers (CDCs),
Advanced Driver Assistance Systems (ADAS), human-machine interface (HMI), automotive software and other related automotive electronic components and technologies, LGEI said.
LGEI’s board, at its meeting on Thursday, approved a proposal to enter a new line of business that will cover manufacturing, assembling, importing, exporting, distributing, trading, selling, and supplying automotive and mobility-related technologies, products, components, systems, and software.
The proposed business will also include installation, integration, servicing, maintenance and providing solutions related to automotive and mobility technologies, LG Electronics India said in a regulatory filing.
As part of the move, the company’s board has also approved an alteration to the Objects Clause of its Memorandum of Association (MOA) by inserting a new sub-clause under the main objects to enable it to undertake the vehicle solutions business.
The proposed alteration is subject to shareholders’ approval through a postal ballot, it added.
“The manufacturing of Vehicles Solutions products will take place at LGE India’s third plant in Sri City, Andra Pradesh,” it said adding “The investments shall be undertaken in a phased manner, based on the scale of operations, technology and equipment requirements, regulatory requirements and prevailing market conditions.”
The proposed entry into the vehicle solutions business is expected to help LG Electronics India diversify its operations beyond its existing product portfolio and tap growth opportunities in the expanding automotive electronics and mobility solutions market.
It will also help “access to emerging opportunities arising from increasing demand for connected vehicles, digital cockpits, advanced infotainment systems and intelligent mobility solutions,” it said.
Besides it will also provide an opportunity to establish and strengthen the company’s presence in the automotive and mobility ecosystem in India, while creating additional business opportunities, potential revenue streams and long-term growth prospects.
