Is LG Electronics Building a $600 Million Home Appliance Factory in India?
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Synopsis
LG Electronics is launching a $600 million home appliance factory in Sri City, India, showcasing its commitment to the growing market. This facility will boost local production capabilities and serve as a regional hub, strengthening LG's position as a leading brand in India.
Key Takeaways
- LG Electronics is investing $600 million in a new factory in India.
- The facility will be located in Sri City, Andhra Pradesh.
- Production is expected to start by the end of 2026.
- The factory will produce various home appliances including refrigerators and air conditioners.
- This investment reinforces LG's position in the Indian market.
Seoul, May 8 (NationPress) LG Electronics announced on Thursday that it is set to commence the construction of a new home appliance manufacturing facility in India, highlighting its dedication to the rapidly expanding market.
A groundbreaking ceremony for the new plant in Sri City, a prominent industrial zone located in the eastern state of Andhra Pradesh, will feature local dignitaries, including Nara Lokesh, the minister for human resources development of Andhra Pradesh, along with executives from LG Electronics, such as President Lyu Jae-cheol, who oversees the home appliance division, as per the company's announcement.
With a substantial investment of US$600 million, the factory is expected to start production by the end of 2026. The facility will have a yearly output capacity of 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors, according to reports from the Yonhap news agency.
This new plant will be LG Electronics' third manufacturing site in India, following existing facilities in the northern city of Noida, Uttar Pradesh, and in the southern city of Pune, Maharashtra.
The Sri City facility aims to act as a regional manufacturing hub, serving not only India but also neighboring markets such as the Middle East and Bangladesh.
LG Electronics stated that this new plant will bolster its local supply chain and further fortify its leadership position in India’s burgeoning consumer durables sector.
"The establishment of the Sri City plant marks a significant milestone that embodies LG Electronics' commitment to becoming a truly national brand in India," Lyu commented. "With innovative products produced through a more robust local supply chain, we aim to further strengthen our position as India’s leading home appliance brand."
In March, LG Group Chairman Koo Kwang-mo visited India as part of the company’s broader strategy to explore new growth avenues.
Throughout his four-day visit, Koo engaged with employees and business leaders to assess the company’s competitiveness across various sectors, from research and development (R&D) to manufacturing and distribution, as per LG Group.
While visiting LG Electronics Inc.'s production sites in New Delhi and LG Soft India, the company’s largest overseas software research center in Bengaluru, Koo underscored the significance of the Indian market in LG’s long-term vision.
He referred to India as a crucial player in propelling the company’s "second leap" in a swiftly evolving landscape and enhancing its footprint.
Moreover, LG Electronics is actively pursuing an initial public offering (IPO) in the Indian financial market.
Point of View
LG Electronics' investment in India signifies a strategic move to strengthen its foothold in a burgeoning market. This initiative not only enhances local manufacturing but also reflects a broader trend of multinational corporations recognizing the potential of India as a key player in the global economy. LG's commitment to innovation and local supply chains aligns with national interests, fostering economic growth and job creation.
NationPress
24/05/2025
Frequently Asked Questions
What is the investment amount for the new LG factory?
The investment amount for the new LG factory in India is $600 million.
Where is the new LG factory located?
The new LG factory is located in Sri City, Andhra Pradesh, India.
When is the production expected to start?
Production at the new LG factory is expected to start by the end of 2026.
What products will be manufactured at the new facility?
The new facility will manufacture refrigerators, washing machines, air conditioners, and air conditioner compressors.
What is the significance of this factory for LG Electronics?
This factory will enhance LG's local supply chain and strengthen its leadership position in India's consumer durables market.
