Overview

• LG Electronics has begun construction on its third manufacturing plant in India, located in Sri City, Andhra Pradesh, with a $600 million investment.
• The facility is set to start production by the end of 2026, with phased capacity ramp-up through 2029, targeting annual outputs of 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors.
• The plant is designed to enhance LG’s local supply chain and solidify its leadership in India’s growing home appliance market, which has significant growth potential due to low appliance penetration rates.
• Sri City is expected to serve not only the Indian market but also neighboring regions, including the Middle East and Bangladesh, as part of LG’s strategy to establish a regional export hub.
• This expansion aligns with LG’s broader growth strategy in India, which includes a potential IPO of its Indian operations and recent leadership visits to assess R&D and manufacturing capabilities.