South Korean technology giant LG Electronics, kicked off the construction of its massive manufacturing facility worth Rs 5,000 crore on Thursday in the south Indian city of Sri City in Andhra Pradesh.
The company is set to establish the largest single-stage electronics investment in southern India with its third plant in the country.
Through this plant, the company aims to grow its presence in one of the world’s fastest growing consumer markets, with focus on high-end products tailored for Indian consumers, including French-door refrigerators and washing machines, designed for traditional clothing like sarees.
It will be LG’s largest investment in South India spanning across 1 million square metres, and is being developed under the state’s new electronics manufacturing policy. The plant is expected to be operational by the end of 2026 and will produce a range of home appliances including 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners and 2 million air conditioner compressors every year. The Andhra Pradesh government has allotted 247 acres for the facility, and the unit will also attract Rs 839 crore worth of investments from four LG suppliers, who will be entering India for the first time.
Production will begin by the end of next year, starting with air conditioners. Other product lines will follow in phases through 2029. Once fully operational, LG's combined production capacity in India will rise to 3.6 million refrigerators, 3.75 million washing machines, and 4.7 million air conditioners annually, in addition to 2 million televisions already being produced at its Noida and Pune plants.
This expansion comes at a time when India’s household penetration for washing machines is just 30% and a mere 10% for air conditioners, signalling strong growth potential in the home appliance sector.
Meanwhile, LG is also planning to list its Indian arm through a Rs 15,000, crore initial public offering (IPO), though the timeline has been pushed back due to global market volatility. The IPO, which is an offer-for-sale by the parent company LG Electronics Inc, involves over 10.18 crore shares and will not raise fresh capital for the Indian subsidiary.
LG entered the Indian market in 1997 with its first plant in Noida and has affirmed its faith in the country as a long term manufacturing base, expanding to south for localising supply chains and scaling up production to match rising demand.
LG Electronics India's revenue from operations was Rs 64,087.97 crore for the financial year ended March 31, 2024.
The company is set to establish the largest single-stage electronics investment in southern India with its third plant in the country.
Through this plant, the company aims to grow its presence in one of the world’s fastest growing consumer markets, with focus on high-end products tailored for Indian consumers, including French-door refrigerators and washing machines, designed for traditional clothing like sarees.
It will be LG’s largest investment in South India spanning across 1 million square metres, and is being developed under the state’s new electronics manufacturing policy. The plant is expected to be operational by the end of 2026 and will produce a range of home appliances including 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners and 2 million air conditioner compressors every year. The Andhra Pradesh government has allotted 247 acres for the facility, and the unit will also attract Rs 839 crore worth of investments from four LG suppliers, who will be entering India for the first time.
Production will begin by the end of next year, starting with air conditioners. Other product lines will follow in phases through 2029. Once fully operational, LG's combined production capacity in India will rise to 3.6 million refrigerators, 3.75 million washing machines, and 4.7 million air conditioners annually, in addition to 2 million televisions already being produced at its Noida and Pune plants.
This expansion comes at a time when India’s household penetration for washing machines is just 30% and a mere 10% for air conditioners, signalling strong growth potential in the home appliance sector.
Meanwhile, LG is also planning to list its Indian arm through a Rs 15,000, crore initial public offering (IPO), though the timeline has been pushed back due to global market volatility. The IPO, which is an offer-for-sale by the parent company LG Electronics Inc, involves over 10.18 crore shares and will not raise fresh capital for the Indian subsidiary.
LG entered the Indian market in 1997 with its first plant in Noida and has affirmed its faith in the country as a long term manufacturing base, expanding to south for localising supply chains and scaling up production to match rising demand.
LG Electronics India's revenue from operations was Rs 64,087.97 crore for the financial year ended March 31, 2024.
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