LG Electronics breaks ground on new plant in India
Officials from LG Electronics and the Indian government pose for a photo during a groundbreaking ceremony for a home appliances plant in Sri City, Andhra Pradesh, Thursday. In the front row sixth from left are President of LG Electronics' Home Appliance and Air Solution Company Lyu Jae-cheol and Minister for Human Resources Development of Andhra Pradesh Nara Lokesh. Courtesy of LG Electronics
LG Electronics broke ground Thursday on its third Indian home appliance plant in Sri City, Andhra Pradesh, as part of its strategy to expand its presence in the world’s most populous country and meet the growing consumer electronics demand in nearby regions.
The company said that its President of Home Appliance and Air Solution, Lyu Jae-cheol, the Minister for Human Resources Development of Andhra Pradesh, Nara Lokesh, and several senior officials from both the company and the state government attended the groundbreaking ceremony.
The plant will be LG Electronics’ third manufacturing complex in India following, those in Noida and Pune. With an investment of $600 million, the plant will occupy 1 million square meters of land, producing 800,000 refrigerators, 850,000 washers and 1.5 million air conditioners annually.
It is scheduled to begin production with air conditioners by the end of 2026 and will expand to manufacturing washers and refrigerators by 2029.
The plant is part of LG Electronics’ strategy to secure growth momentum in emerging markets, including Asia, Latin America, the Middle East and Africa. India is one of the fastest-growing economies in the world, posting a growth rate more than twice the global average.
A rendering of LG Electronics' upcoming home appliance plant in Sri City, India / Courtesy of LG Electronics
LG Electronics said it decided to make the investment as the Indian market still records relatively low penetration rates for washers and air conditioners — 30 percent and 10 percent, respectively — and the demand for premium home appliances is quickly expanding amid fast economic growth.
Along with the Indian market, the plant is expected to serve as a manufacturing hub for nearby regions, including the Middle East and South Asian countries such as Bangladesh and Sri Lanka.
The new plant is located close to the Indian Ocean, offering logistical advantages for exports. It is also adjacent to Chennai, a major city in southeastern India, providing better geographic access to southern India compared to the company’s existing facilities in Noida in the north and Pune in the west.
“The construction of the Sri City home appliance plant is a milestone reflecting LG Electronics’ commitment to become a national brand in India,” Lyu said.
“We will further solidify our position as India’s leading home appliance brand by delivering innovative products backed by a strengthened local supply chain.”