Shri City (Andhra Pradesh), 8 May (PTI) LG Electronics on Thursday started construction work at its Rs 5,000 crore home appointment factory-its third plant in India, as part of a comprehensive push to strengthen its presence in one of the world’s fastest growing consumer markets.
South Korean veteran investment in the growing industrial corridor in Andhra Pradesh is the largest single phase electronics investment in South India.
Slated to complete by the end of 2026, the plant spread over 1 million square meters will roll out the 800,000 refrigerator, 850,000 washing machines, 1.5 million air conditioners and 2 million air conditioner compressors annually.
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A spectacular ceremony at the construction site was attended by Andhra Pradesh’s Human Resource Development Nara Lokesh and senior LG Electronics India Limited (LGEIL), the company said in a statement.
Production is expected to begin at the end of next year, starting with air conditioners, followed by washing machines, refrigerators and compressors 2029.
The unit Noida will have the third facility of the Korean tech veteran after existing factories, Delhi and Pune after existing factories.
Once the new site is turned on, LG’s combined annual capacity in India will increase to 2 million TVs, 3.6 million refrigerators, 3.75 million washing machines and 4.7 million air conditioners.
It is the first major manufacturing complex to start work under the Electronics Manufacturing Policy of the Government of New Andhra Pradesh.
The Andhra Pradesh cabinet gave a node for the unit in November 2024 and started work in a record time of less than 6 months.
Four suppliers of LG Electronics are coming to India for the first time. He has confirmed his investment of Rs 839 crore in the same area (Sri city campus).
The Andhra Pradesh government has provided 247 acres of land in the city for the new plant, which is expected to generate about 1,900 direct and indirect jobs.
“We are happy that LG Electronics has chosen Sri City for its third manufacturing facility in India. It is a will of LG Electronics commitment to India and I am confident that this expansion throughout India will address a possible increase in demand for LG products across India.”
This new plant is expected to cover a site area of 1 million square meters, with a total floor area 220,000 square meters. In this facility, LGEIL will invest to a tune of USD 600 million (Rs 5,001 crore) over a period of four years and brings a capacity to bring assistants to the region, which creates an ecosystem for the manufacture of white goods in the state of Andhra Pradesh.
Apart from the service of India’s huge consumer base, the factory products of the city will also be exported to neighboring markets like Bangladesh and Middle East countries.
For a firm entering the Indian market with its first plant in Noida in 1997, the Sri city plant is an important step in making the supply chains local and enhancing the output to meet the demand for modern home appliances among the rapidly expanded middle class of India.
As global companies assure the supply chains between transfacting Bhurajnic and economic currents, LG’s investment also reflects its role as confidence in India’s manufacturing infrastructure and production basis for the wider field.
India’s current domestic penetration rate for washing machines is 30 percent and is only 10 percent for air conditioners, suggesting major development opportunities.
The new feature will mainly produce high-end lines, such as French Door refrigerators and front-loading washing machines. LG has already introduced India-specific models, such as convertible refrigerators that are ready for vegetarian diet and washing machines, such as with a dedicated cycle to traditional clothing such as sarees.
LG wants to list its Indian unit to tap in the country’s stirring capital market. The IPO, which was valued at around Rs 15,000 crore, was initially expected to be in May, but the US tariff uncertain has been delayed by market volatility.
Earlier on December 6, 2024, LG Electronics India Limited, a subsidiary of South Korean Chabol LG, filed initial documents with SEBI for an initial public offer, in which the native company will sell more than 10.18 crore shares more than 15 percent of the share.
The proposed IPO is a proposal for 10.18 crore equity shares by Promise LG Electronics Inc., for-SAL (OFS), with no fresh issue component, which is according to the draft of the Red Herring Prospectus (DRHP).
According to its South Korean -origin company LG Electronics Inc. DRHP, 10,18,15,859 equity shares will sell Rs 10 with an inscribed price of Rs 10. Since the public issue is completely Or, LG Electronics India will not get any IPO income. The raised funds will go to South Korean parents.
LG Electronics India is a major player in major home appliances and consumer electronics. The company’s products are sold to both B2C (Business-to-Consumer) and B2B (business-to-business) customers at the international level. It also provides installation, repair and maintenance services for all its products.
LG Electronics was Rs 64,087.97 crore for the financial year ended on 31 March 2024 from the operation of LG Electronics. PTI KRH DRR
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