Image Source: Manufacturing Today India
LG Electronics India officially laid the groundwork for its third local manufacturing unit, which will be situated at Sri City in Andhra Pradesh. The company's massive investment will serve to enhance LG's presence in the Indian market, spur local production, jobs, and the electronic industry in South India.
Overview of the project
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LG Electronics is investing around ₹5,000 crore (USD 600 million) in the new Sri City, Andhra Pradesh, plant, which will be the largest investment in South India by the company.
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The plant will have an area of 247 acres and is likely to begin operations by December 2026.
Production Capacity and Product Range
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High-end home appliances like refrigerators, washing machines, air conditioners, and compressors will be produced in the plant.
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Approximate annual production: 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors.
Employment and Economic Impact
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The project is anticipated to generate about 1,495 direct and up to 10,000 indirect jobs in the region.
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Four LG supplier firms will also invest ₹839 crore, adding further momentum to the local industrial ecosystem.
Government Support and Incentives
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Andhra Pradesh government has provided land and incentives: 100% water concession for 20 years, stamp duty and registration fee exemptions, electricity tariff concession, and skilling concession for employees.
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Special fast-track clearance and a special officer will guarantee quick project implementation.
Strategic Significance
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This is LG's first manufacturing facility in South India, in addition to existing factories in Noida and Pune.
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The plant will cater to the Indian market as well as to the neighboring countries, helping LG meet its objective of consolidating its supply chain and addressing growing demand for high-end appliances.
Leadership Remarks
"The establishment of our third factory will supplement our current production bases in Noida and Pune and represents another milestone in our history in India. This brand-new factory will generate additional employment and boost local production.
Lyu Jae-cheol, President of LG Home Appliance Solution Company
Sources: LG Newsroom, NewsBytes, The Korea Herald, The Hans India, CNBC TV18, The New Indian Express, Economic Times Manufacturing, Moneycontrol
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