South Korean Giant LG Electronics Expands Its Footprint in India

South Korean technology giant LG Electronics has commenced the construction of a massive manufacturing facility worth Rs 5,000 crore in Sri City, Andhra Pradesh. This marks the company's third plant in India and its largest single-stage electronics investment in the southern region.

Aiming for the Indian Consumer Market

With this new plant, LG aims to strengthen its presence in one of the world's fastest-growing consumer markets. The facility will focus on producing high-end products tailored for Indian consumers, including French-door refrigerators and washing machines designed for traditional clothing like sarees.

Operation and Production Goals

The plant, spanning 1 million square metres, is expected to be operational by the end of 2026. It will produce 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors annually. The Andhra Pradesh government has allocated 247 acres for the facility, which will also attract Rs 839 crore worth of investments from four LG suppliers entering India for the first time.

Future Prospects and IPO Plans

LG's expansion comes at a time when India's household penetration for washing machines is just 30% and a mere 10% for air conditioners, indicating strong growth potential in the home appliance sector. Meanwhile, LG is planning to list its Indian arm through a Rs 15,000 crore IPO, although the timeline has been delayed due to global market volatility.