After InGovern Research Services identified INR 4,717 crore in contested tax liabilities, ongoing royalties, and related-party transactions, LG Electronics India’s INR 11,607 crore IPO (Initial Public Offering) is being investigated. The advising company added that the Korean parent will maintain 85% control after listing, noting that a poor decision in these procedures might severely reduce future earnings or necessitate remedies.
Findings of the InGovern
With all proceeds going straight to the parent firm and no new funds being collected for expansion, the IPO, which is a 100% offer-for-sale by Korean promoter LG Electronics Inc., is set to close today, October 9, at 5 p.m. According to InGovern, LGEIL has revealed contingent liabilities totalling INR 4,717 crore, which accounts for 73% of its total net worth.
The main source of these obligations is contested income tax, excise, and service tax claims. Citing current appeals before appellate forums and legal guidance, the advice also stated that the company has not made provisions for these proceedings.
LG India Faces Contingent Liability of INR 315 Cr
Transfer pricing on royalties and payments for technical services to the promoter account for a sizable amount of tax disputes. InGovern emphasised that royalties they pay to the promoter under the terms of the licence agreement or in other circumstances could be subject to regulatory scrutiny or action. Royalties alone accounted for INR 315 crore of LG India’s potential liabilities as of the IPO filing; this amount may increase as a result of regulatory reviews.
The advice firm also pointed out that, without shareholder consent, the Korean parent company may increase royalties from domestic production by up to 5% of yearly consolidated turnover. Over the last three years, royalty outflows have historically varied from 1.63% to 1.90% of revenue; this structure may have an impact on margins in the absence of scrutiny by minority investors.
InGovern cautioned that LG Electronics Inc. would lose its ability to produce and market under the LG brand and that operations would be seriously disrupted if it terminated or changed the perpetual licence agreement with six months’ notice.
Multiple Legal Agreements Between LG India and Other LG Entities
The promoter would have effective control over board decisions and related-party transactions when LG Electronics retains 85% of its Indian unit following the IPO. “The promoter may take into account the interests of its subsidiaries and affiliates that may not align with minority shareholders,” according to InGovern.
The Korean parent company, LG India, and other LG Group companies have a number of licensing, technical service, and framework agreements that result in continuous governance exposure. Concerns regarding transparency and transfer pricing were raised by the advising company when it stated that “no independent benchmarking study or third-party pricing review for royalty payments is presented.”
LG India’s IPO is a pure offer-for-sale that only benefits the promoter, even though the company reported INR 24,367 crore in revenue and INR 2,203 crore in net profit for FY25 with a debt-free balance sheet. InGovern concluded by stating that careful thought should be given to the governance issues surrounding related-party transactions and contingent liabilities.
Quick Shots
•InGovern flags INR 4,717 crore in disputed tax,
royalty, and related-party risks.
•Tax, excise, and service tax disputes form 73% of
LG India’s net worth.
•IPO proceeds go entirely to Korean parent LG
Electronics Inc.; no fresh funds raised for expansion.
•INR 315 crore liability linked to royalty payments
and technical service fees to the parent firm.
India’s electronics market is experiencing explosive growth, driven by advanced technology, rising disposable incomes, and an insatiable demand for the latest gadgets. From smartphones and wearables to smart home devices, consumers are embracing tech like never before, making this sector one of the most vibrant in the country. For ambitious entrepreneurs, electronics retail franchises offer a low-risk, high-reward entry into this booming industry. With established brand trust, scalable business models, and comprehensive support, franchising provides a faster and more secure route to profitability.
Here are the top 10 electronics retail franchises in India for 2025, brands that are changing the way Indians shop and experience technology.
Why Should You Invest in an Electronics Store Franchise in India?
Electronics have become a necessity rather than a luxury. There is no day without a smartphone, television, laptop, or kitchen appliances. Here are a few reasons why you should consider this segment:
Huge Market Potential: India is the world’s second-largest smartphone market and a key hub for consumer electronics. According to Statista, the consumer electronics market is projected to grow at a CAGR of 6.9% from 2025 to 2030.
Rising Digital Penetration: With the government’s Digital India initiative and 5G rollout, more people are upgrading to smart devices, leading to higher sales of electronics.
Easy Finance & EMI Options: Brands and retailers now offer easy EMI options, no-cost financing, and attractive discounts, making electronics affordable for a larger customer base.
Franchise Model Reduces Risk: Instead of starting from scratch, partnering with a reputed electronics brand ensures brand trust, supplier support, and better margins.
5 Benefits of Owning an Electronics Store Franchise
Strong Brand Recognition – Customers trust established names like Croma, Reliance Digital, or Vijay Sales, which gives franchise owners an instant advantage. This credibility attracts footfall and reduces the need for huge local marketing efforts.
Marketing & Advertising Support – Most brands invest heavily in advertising campaigns and provide promotional support. Franchise owners benefit from national and digital campaigns without spending extra on brand-building.
Assured Supply Chain – Brands ensure the timely delivery of products, which means no inventory hassles for the franchisee. This minimizes stock shortages and ensures customers always find the latest products in-store.
Training & Operational Support – From store design to staff training, franchisors provide complete guidance. This helps even first-time entrepreneurs run the business professionally and efficiently.
High Demand, Year-Round Sales – Unlike seasonal businesses, electronics sales peak during festivals, sales events, and new product launches, ensuring steady revenue. With technology upgrades happening frequently, there’s always a reason for customers to shop.
Best 10 Profitable Electronics Store Franchise Businesses in India
Croma (Tata Group)
Franchise Investment
INR 2–3 Crore
Space Required
8,000 – 10,000 sq. ft.
USP
Wide portfolio of gadgets, appliances, and consumer electronics backed by strong Tata brand trust and omnichannel reach.
Croma – Best Profitable Electronics Store Franchise Businesses in India
Croma, powered by the Tata Group, is a pioneer in India’s organized electronics retail sector. It offers an extensive range of products, including smartphones, laptops, home appliances, and smart devices. Its strong brand reputation, festive offers, financing options, and omnichannel presence make it a preferred destination for consumers. For franchise partners, Croma ensures high trust value, strong backend support, and consistent customer demand.
Backed by Reliance Retail’s extensive supply chain and aggressive pricing.
Reliance Digital – Best Profitable Electronics Store Franchise Businesses in India
Reliance Digital dominates India’s electronics retail market with a wide network of stores offering gadgets, home appliances, and personal tech solutions. The brand leverages Reliance’s robust supply chain, competitive pricing strategies, and exclusive product deals to attract high customer footfall. With strong brand recall, omnichannel integration, and customer loyalty programs, Reliance Digital provides franchisees a profitable and future-ready retail model.
Orient Electric
Franchise Investment
INR 30–50 Lakh
Space Required
800 – 1,500 sq. ft.
USP
Strong product portfolio in energy-efficient appliances and brand legacy of over 60 years.
Orient Electric – Best Profitable Electronics Store Franchise Businesses in India
Orient Electric is a household name in India, known for its innovation in fans, lighting solutions, and home appliances. With growing demand for energy-efficient and stylish appliances, Orient Electric offers a great retail opportunity with strong brand support, a reliable supply chain, and nationwide marketing initiatives. Franchise partners also benefit from Orient’s aggressive expansion plans and strong dealer network support.
XElectron
Franchise Investment
INR 2–5 Lakh
Space Required
150 – 600 sq. ft.
USP
Affordable smart gadgets and projectors with a focus on modern lifestyle needs.
XElectron – Best Profitable Electronics Store Franchise Businesses in India
XElectron caters to tech-savvy customers with affordable projectors, smart devices, and innovative electronic solutions. With a booming demand for home entertainment and smart gadgets, the brand provides franchise partners a low-investment entry into the electronics retail space with promising margins. Its focus on budget-friendly innovation makes it popular among young and urban consumers.
Samsung Smart Café
Franchise Investment
INR 30–70 Lakh
Space Required
600–1200 sq. ft.
USP
Exclusive access to Samsung’s latest tech and strong customer loyalty.
Samsung Smart Café – Best Profitable Electronics Store Franchise Businesses in India
Samsung Smart Café is designed to offer a premium shopping experience for Samsung enthusiasts, showcasing the latest smartphones, tablets, wearables, and accessories. Backed by Samsung’s global reputation and robust product ecosystem, these stores guarantee steady footfall and repeat customers. Franchisees benefit from regular product launches and aggressive marketing campaigns by Samsung.
High-demand products including TVs, refrigerators, washing machines, and smart home solutions.
LG Electronics – Best Profitable Electronics Store Franchise Businesses in India
LG Electronics has earned customer trust with its innovative and energy-efficient home appliances. Franchise partners enjoy access to an extensive product line, a loyal customer base, and strong after-sales service support. Seasonal offers and financing schemes help boost store conversions and maintain consistent sales.
Kay Dee Electronics
Franchise Investment
INR 20–40 Lakh
Space Required
2,000 – 3,000 sq. ft.
USP
Multi-brand electronics retailer with strong presence across North India, offering top household and consumer electronic brands, competitive margins, and fine-tuned regional operations.
Kay Dee Electronics – Best Profitable Electronics Store Franchise Businesses in India
Kay Dee Electronics (operated by Kay Dee Audiovisions Pvt. Ltd.) is a trusted consumer electronics and appliance retail chain established in 1988. This multi-brand store stocks major global brands like LG, Samsung, Sony, Whirlpool, Panasonic, Daikin, Haier, Carrier, Voltas, IFB, Godrej, TCL, Vu, and more.
Sony Centre
Franchise Investment
INR 50 Lakh – 1 Crore
Space Required
500 – 1,000 sq. ft.
USP
Exclusive brand outlet for premium Sony products with strong brand recall and cutting-edge technology.
Sony Centre – Best Profitable Electronics Store Franchise Businesses in India
Sony Centre is the official retail chain for Sony products in India, offering a premium range of electronics, including Bravia TVs, audio systems, PlayStation consoles, cameras, and accessories. Known for its focus on innovation and superior customer experience, Sony Centre provides a brand-driven retail opportunity. Franchise partners benefit from Sony’s global reputation, strong product lineup, marketing support, and consistent demand from tech-savvy consumers.
Bajaj Electronics
Franchise Investment
INR 25–50 Crore
Space Required
2,000 – 3,000 sq. ft.
USP
Strong presence in India with a wide range of home appliances, electronics, and competitive pricing strategies.
Bajaj Electronics – Best Profitable Electronics Store Franchise Businesses in India
Bajaj Electronics is a well-established retail chain in the consumer electronics segment, particularly dominant in Telangana and Andhra Pradesh. The brand is known for offering an extensive selection of electronics, including TVs, refrigerators, washing machines, air conditioners, and kitchen appliances. With aggressive pricing, attractive EMI options, and strong regional brand loyalty, Bajaj Electronics ensures steady customer footfall.
Haier Experience Store
Franchise Investment
INR 30–70 Lakh
Space Required
Approximately 250 sq. ft. (compact retail outlet format)
USP
Exclusive showcase for Haier’s smart appliances and IoT‑based home solutions, delivering futuristic interactive displays and brand experience.
Haier Experience Stores – Best Profitable Electronics Store Franchise Businesses in India
Haier Experience Stores (also called Haier Experience Centres or Zones) are exclusive retail outlets conceptualized to present Haier’s latest innovations, refrigerators, washing machines, ACs, smart home appliances, and TVs, in immersive, lifestyle-oriented settings. These mini‑stores emphasize live product demos in smart kitchen, bedroom, and living room environments to enhance customer experience.
Conclusion
Electronics store franchises combine brand power, growing demand, and scalable business models, making them a lucrative choice for Indian entrepreneurs. With the right location, brand, and customer service, this business can yield impressive returns. Choosing a trusted brand with strong supply chain support and marketing assistance can significantly reduce risks and boost profitability.
What are the most profitable electronics store franchises in India?
The most profitable electronics store franchises in India are:
Croma (Tata Group)
Reliance Digital
Orient Electric
XElectron
Samsung Smart Café
LG Electronics
Kay Dee Electronics
Sony Centre
Bajaj Electronics
Haier Experience Store
Can I run an electronics store franchise in a small town or Tier-2 city?
Yes, you run an electronics store franchise in a small town or Tier-2 city.
What are the benefits of owning an electronics franchise over an independent store?
Owning a franchise ensures brand credibility, assured product supply, staff training, national marketing campaigns, and a proven business model—minimizing startup risks compared to independent ventures.
Is it necessary to have retail experience to run an electronics store franchise?
No prior retail experience is mandatory. Most electronics franchisors offer end-to-end operational training, staff hiring guidance, and store setup support to help first-time entrepreneurs succeed.
