LG Electronics India is set to establish a major manufacturing hub in Sri City, Andhra Pradesh, with a significant investment of Rs 5,000 crore. The foundation stone for this ambitious facility was laid by Nara Lokesh, the Andhra Pradesh Minister for IT, on Thursday. This new plant marks a pivotal step in the company’s expansion plans and is an essential component of the state’s manufacturing policy.
A Timeline of Production
The facility is expected to commence operations with air conditioners in 2026, followed by a gradual introduction of washing machines, refrigerators, and compressor lines by 2029.
Once fully operational, the manufacturing hub will boast impressive production capabilities, including:
- 800,000 refrigerators annually
- 850,000 washing machines each year
- 1.5 million air conditioners
- 2 million air conditioner compressors
This initiative represents the largest facility established under the Andhra Pradesh government’s manufacturing policy, highlighting the state’s commitment to boosting local industry.
Government Support and Incentives
The Andhra Pradesh government has provided 247 acres of prime land in Sri City for this new manufacturing plant. To further support LG’s investment, the state has implemented several incentives, including:
- Waiving stamp duty and registration fees
- Offering a 20-year full subsidy on water consumption
- Providing an SGST refund on construction expenses
- Granting a 100% exemption from electricity duty for two decades
- A 50% subsidy on electricity tariffs for the same period
- A monthly Rs 6,000 skilling subsidy per worker for five years
These measures are expected to create approximately 1,500 direct jobs and around 10,000 indirect jobs, significantly contributing to the local economy.
Vendor Partnerships and Future Plans
In addition to LG’s investment, four key vendor partners are also planning to establish operations in India, bringing an extra Rs 839 crore investment to Sri City.
Moreover, LG Electronics India is gearing up for its initial public offering (IPO) and has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). Although the IPO was initially scheduled for May 8, the launch has been postponed due to fluctuations in the market.
This new manufacturing facility not only signifies LG’s commitment to expanding its footprint in India but also enhances the state’s manufacturing landscape, setting the stage for further economic growth and job creation.
