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[Alpha Biz= Kim Jisun] LG Electronics has begun construction on its third home appliance manufacturing facility in India, investing $600 million (approximately KRW 840 billion) to strengthen its production capabilities for refrigerators, washing machines, and air conditioners. The investment reflects the company’s confidence in India’s growing consumer market and its strategic importance as a regional supply hub.



On May 8 (local time), LG held a groundbreaking ceremony for the new facility in Sri City, Andhra Pradesh. The plant will be built on a one-million-square-meter site with a floor area of 220,000 square meters and is expected to begin operations in 2026. Annual production capacity will include 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors. Production will be ramped up in phases—beginning with air conditioners in late 2026, followed by washing machines, refrigerators, and compressors by 2029.



The decision to expand manufacturing in India aligns with LG’s strategy to meet growing demand in both the domestic market and neighboring countries. The company has previously announced plans to secure growth in emerging markets across Asia, Latin America, and the Middle East & Africa—collectively referred to as the "Global South." The Sri City plant is expected to serve as a key export base for products shipped across India as well as to nearby regions such as the Middle East and South Asia, including Bangladesh and Sri Lanka.



India’s home appliance market holds significant potential, with the current penetration rates for washing machines and air conditioners at just 30% and 10%, respectively. Rapid economic development is expected to drive increased demand. Strategically located near Chennai on the southeastern coast, the new plant also offers logistical advantages for export operations and improved supply coverage for southern India compared to LG’s existing plants in Noida (north) and Pune (west).



Product lines will focus on high-value appliances, such as French-door refrigerators and front-load washing machines, to meet growing demand for premium offerings in India and nearby export markets. LG is also tailoring its products to better suit local lifestyles. For instance, it has introduced convertible refrigerators that allow users to switch the freezer compartment into a fridge, and washing machines with fabric care cycles designed for traditional Indian garments such as sarees.



In addition to expanding its production footprint, LG continues to enhance its sales and customer service infrastructure in India. The company operates over 700 branded retail shops and 900 service centers nationwide and offers multilingual customer support in 12 Indian languages, establishing one of the most comprehensive service networks in the industry.

 

 

 

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