LG Electronics India Ltd. has commenced construction of its third manufacturing facility in Sri City, Andhra Pradesh, marking a significant expansion of its Indian operations. The ₹5001 crore ($600 million) investment project, announced during a ceremony on May 8, 2025, is scheduled to begin operations by late 2026, strengthening India’s position in the global home appliance market.
The expansive 247-acre facility in Sri City’s industrial zone will focus on manufacturing essential home appliances, including air conditioners, washing machines, refrigerators, and AC compressors. This strategic investment is projected to create approximately 1,495 direct employment opportunities, fostering significant economic growth in the region.
The groundbreaking ceremony witnessed the presence of Shri Nara Lokesh, Andhra Pradesh’s Minister for Information Technology, Electronics and Communications, demonstrating strong governmental support for this industrial venture. The event highlighted the project’s importance in establishing a robust white goods manufacturing ecosystem in the state.
This new establishment complements LG’s existing manufacturing units in Greater Noida, Uttar Pradesh, and Pune, Maharashtra. The strategic location in southern India aims to enhance production capabilities and streamline supply chain efficiencies across the country, further cementing India’s position as a crucial hub in LG Electronics’ global supply network.
Since entering the Indian market in 1997, LG Electronics has maintained steady growth through its manufacturing facilities. The Noida plant currently produces a range of home appliances, including refrigerators, washing machines, air conditioners, ovens, and water purifiers. The Pune facility, which received a ₹2 billion expansion investment in 2023, manufactures similar products alongside televisions and recently added a production line for side-by-side refrigerators.
The substantial four-year investment in Sri City reflects LG’s confidence in India’s growing consumer market and economic potential. This expansion strategically addresses the rising domestic demand for home appliances, positioning LG to capitalise on India’s emerging opportunities in the consumer electronics sector.
Industry analysts view this development as a crucial step towards increasing localised manufacturing and reducing import dependence. The Sri City facility is expected to serve as a cornerstone for LG’s manufacturing presence in southern India, attracting additional suppliers and stimulating regional economic growth.
The new facility represents LG Electronics’ commitment to expanding its production capabilities domestically, aligning with the broader trend of multinational corporations investing in Indian manufacturing. This strategic move positions the company to meet growing market demands while potentially exploring new product lines in the future.
As construction progresses, the Sri City plant is set to become a vital component in LG’s manufacturing infrastructure, promising enhanced production capabilities, employment generation, and stronger integration into the global electronics supply chain by the end of 2026.
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