LG Electronics Expands Its Footprint in India with New Appliance Factory
In a significant move to strengthen its presence in the rapidly expanding Indian market, LG Electronics announced plans to establish a new home appliance manufacturing facility in Sri City, Andhra Pradesh. This groundbreaking ceremony, set to be attended by local dignitaries, including Nara Lokesh, the state’s Minister for Human Resources Development, and LG’s President Lyu Jae-cheol, marks a pivotal moment for the company.
Major Investment for Future Production
With a substantial investment of $600 million, this state-of-the-art facility is projected to begin operations by the close of 2026. The plant aims to achieve impressive production capacities, with the ability to manufacture:
- 800,000 refrigerators
- 850,000 washing machines
- 1.5 million air conditioners
- 2 million air conditioner compressors
This new facility will be LG Electronics’ third production site in India, complementing its existing plants in Noida, Uttar Pradesh, and Pune, Maharashtra.
A Regional Manufacturing Hub
The Sri City plant is designed to serve as a strategic manufacturing hub, not only for India but also for neighboring markets, including the Middle East and Bangladesh. LG Electronics believes this facility will significantly enhance its local supply chain capabilities, reinforcing its leadership position in India’s burgeoning consumer durables sector.
Lyu Jae-cheol stated, “The establishment of the Sri City plant represents a key milestone, reaffirming LG Electronics’ commitment to becoming a prominent national brand in India. With innovative products manufactured through a robust local supply chain, we aim to solidify our status as the leading home appliance brand in the country.”
Commitment to Growth in India
Earlier this year, in March, LG Group Chairman Koo Kwang-mo visited India to explore new growth avenues. During his four-day trip, he interacted with employees and industry leaders to assess the company’s competitiveness across various sectors, from R&D to manufacturing and distribution.
While touring LG’s production facilities in New Delhi and its largest overseas software research center in Bengaluru, Koo emphasized the Indian market’s crucial role in LG’s long-term strategy. He referred to India as essential for driving the company’s next phase of growth in an evolving global landscape.
Additionally, LG Electronics is actively pursuing an initial public offering (IPO) in the Indian financial market, signaling its commitment to deepening its roots in the country.
Conclusion
With this new manufacturing plant, LG Electronics is not just generating jobs but also contributing to the local economy while solidifying its reputation as a leader in home appliances. As the company continues to innovate and expand, it is well-positioned to meet the growing demands of Indian consumers.
