LG India paid ₹323 cr in royalty to parent in FY24

LG ELECTRONICS INDIA, which filed its offer document last week for a $1.8-billion initial public offering (IPO), paid 2.3-2.4% of sales in royalty to its parent in FY24, totaling ₹323 crore, its draft red herring prospectus (DRHP) showed.

- VIVEAT SUSAN PINTO

Analysts and proxy advisory firms say that royalty rates may increase in the future as LG India continues to depend on its parent entity for various aspects of its business. This is despite efforts to increasingly localize operations by the firm.

In its DRHP released on Friday, LG India said it continued to seek support from its parent for product design and innovation, technologies for manufacturing, brand and related technical know-how as well as exports.