LG Electronics will build its third home appliance factory in India. This is a strategy to accelerate its vision of becoming the 'national brand' of India.
On the 8th (local time), LG Electronics will hold a groundbreaking ceremony at the construction site of its home appliance factory in Sri City, Andhra Pradesh, India. The event will be attended by Minister of Human Resource Development Dharmendra Pradhan, Minister of Industries K.T. Rama Rao, and LG Electronics’ HS Division President Ryu Jae-cheol, ES Division Vice President Lee Jae-sung, and India Corporation Chief Jeon Hong-joo.
The Sri City home appliance factory will cover a site of 1 million square meters with a total floor area of 220,000 square meters, and the total investment amount is approximately $600 million (about 830 billion won). The annual production capacity is expected to reach 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors. The initial production of air conditioners will begin at the end of 2026, with production lines for washing machines, refrigerators, and air conditioner compressors to follow by 2029.
The construction of the Sri City factory is part of LG Electronics' regional strategy to secure growth momentum in emerging markets known as the 'Global South' across Asia, Latin America, and the Middle East and Africa. India is the world's most populous country and a key nation in the Global South, recording an economic growth rate that is more than twice the global average.
LG Electronics has decided to invest, judging that strengthening production capacity is essential to establish itself as a national brand in the Indian home appliance market. The penetration rates for washing machines and air conditioners in the Indian market are currently around 30% and 10%, respectively, indicating significant room for market growth, but the existing factories in Noida and Pune might struggle to meet demand.
LG Electronics CEO Jo Ju-wan noted on social media that "LG Electronics recognizes India's tremendous potential and is committed to its development," adding, "Through continuous investments in manufacturing, innovation, and talent development, we are proud to contribute to India's journey to become a key pillar of the global economy."
The Sri City home appliance factory is expected to serve as a production base that will seamlessly supply home appliances not only throughout India but also to nearby countries in the Middle East and South Asia (such as Bangladesh and Sri Lanka). Located near Chennai in southeastern India and close to the coast of the Indian Ocean, it is advantageous for exports and has favorable geographical conditions for supplying products to the southern region of India. The factory will focus on high-value products such as French door refrigerators and drum washing machines to meet the demand for premium appliances in India and for export to neighboring countries.
Building on its expanded production capacity, LG Electronics is also accelerating the production of products optimized for local lifestyles. Recently, considering the vegetarian-oriented food culture that seeks ample refrigeration space, it has introduced convertible refrigerators that can switch from freezer to fridge, and washing machines equipped with dedicated cycles tailored to the soft fabric of traditional attire saris, which have received positive responses in the Indian market.
It is also enhancing its sales and service capabilities. LG Electronics operates over 700 brand shops and more than 900 service centers across India, providing telephone consultation services in 12 languages.
President Ryu Jae-cheol remarked, "The construction of the Sri City home appliance factory is a milestone that embodies LG Electronics' resolve to become India's true national brand," and added, "By leveraging an even more robust local supply chain, we will further solidify our status as India’s top home appliance brand with innovative products."