No slowdown in B2B segment; govt orders have revived: LG

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Korean consumer electronics major LG Electronics said there is no slowdown in institutional sales in India and the stalled government projects during the election have revived boosting prospects for its business-to-business (B2B) sales in the country. LG Electronics India senior director (B2B) R. Zutshi said there is not much slowdown in B2B orders and government purchases, which had slowed down between March to June due to general election, has started to pick up now. “Retail and corporate sectors are digitizing and new workspaces are getting created where there is huge scope for B2B products,” he said. Zutshi said areas like flexible office space and airport modernization will boost B2B business since LG is a major supplier for such projects and also has a memorandum of understanding with the Airports Authority of India. “We have a healthy order book,” he said. LG India, which has a dominating market share in home appliances such as refrigerators and washing machines and is the second-largest brand in television, is now targeting 30% growth in the B2B business in India this calendar year. “We are targeting to cross a turnover of Rs 2,000 crore by this year-end for B2B.

We expect to grow by 30-35% for the next two years as well,” said Zutshi. In the consumer segment, Zutshi said the appliance market is continuing to grow while the television market is facing a slowdown but that is more due to higher goods and services tax (GST) on televisions. “We want a uniform and lower GST for television. Currently, 32 inches and above screen sizes attract 28% GST while the smaller screens 18%. There should be uniform GST and lower GST like mobile phones which will help to revive the television industry. For instance, when the government had reduced GST on refrigerators to 18% there was a spike in demand,” Zutshi said. LG on Wednesday launched a new B2B product portfolio including all-in-one LED screens, transparent OLED, interactive digital boards and new outdoor display. Zutshi said almost all B2B products are manufactured in India except OLED, but the company has plans to start its local production after a couple of years.