LG Electronics, alongside its suppliers, is set to make a significant investment in India, totaling Rs 7,000 crore for the construction of its third manufacturing facility in Sri City, Andhra Pradesh. Of this amount, LG Electronics will contribute Rs 5,000 crore, while the remainder will come from its Korean and Chinese component suppliers. The new plant is expected to boost India’s manufacturing capabilities and is poised to create over 1,500 direct jobs, further enhancing the local economy.
The proposed facility will produce a wide range of consumer electronics, including air-conditioners, refrigerators, washing machines, and televisions, catering both to the Indian market and export needs. This investment will not only strengthen LG’s presence in India, but it will also mark the first time that its component suppliers will establish manufacturing units in the country. It is set to become one of the largest investments in consumer electronics manufacturing in India.
Currently, LG has manufacturing plants in Greater Noida, Uttar Pradesh, and Ranjangaon, near Pune, but the new plant will allow for greater production capacity, enhancing its ability to meet the growing demand in India, which is one of the world’s largest and most promising consumer markets. The investment also comes as part of LG's continued expansion in India, a market they entered in 1997.
LG has also submitted its investment proposal to the Andhra Pradesh government and has been allotted a portion of the required land in Sri City for the project. The government is expected to allocate the remaining land soon, after which a formal announcement will be made.
Additionally, LG Electronics is exploring an Initial Public Offering (IPO) in India, with plans to raise up to $1.5 billion. The funds generated from the IPO are likely to support the new manufacturing plant’s development. A company spokesperson confirmed that while several investment options are being considered, no final decision has been made yet. The IPO is expected to launch in early 2025.
This major investment by LG and its suppliers is a testament to the promising growth potential of India’s economy and consumer electronics sector, making it a crucial move for the company as it aims to strengthen its market position and cater to the ever-growing demand for electronics in the country.
