LG Electronics To Build $600 Mn Home Appliance Factory In India

(MENAFN- IANS) Seoul, May 8 (IANS) LG Electronics said on Thursday it will break ground on a new home appliance factory in India, reinforcing its commitment to the fast-growing market.

A groundbreaking ceremony of the plant in Sri City, an industrial hub in the eastern state of Andhra Pradesh, will be attended by local officials, including Nara Lokesh, minister for human resources development of Andhra Pradesh, as well as LG Electronics executives, including President Lyu Jae-cheol, head of the home appliance division, according to the company.

With an investment of US$600 million, the facility is slated to begin production by the end of 2026. It will have an annual capacity of 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners and 2 million air conditioner compressors, reports Yonhap news agency.

It will be LG Electronics' third production base in India, following plants in the northern city of Noida, Uttar Pradesh, and in the southern city of Pune, Maharashtra.

The Sri City plant is expected to serve as a regional manufacturing hub for India and neighbouring markets, including the Middle East and Bangladesh.

LG Electronics said the new plant will enhance its local supply chain and help strengthen its leadership in India's growing consumer durables market.

"The construction of the Sri City plant is a milestone that signifies LG Electronics' commitment to becoming a true national brand in India," Lyu said. "With innovative products produced through a stronger local supply chain, we will further solidify our position as India's top home appliance brand."

In March, LG Group Chairman Koo Kwang-mo visited India as part of the company's broader strategies to seek new growth opportunities.

During his four-day stay in India, Koo met with employees and business leaders to evaluate the company's competitiveness across the value chain, from research and development (R&D) to manufacturing and distribution, according to LG Group.

While touring LG Electronics Inc.'s production facilities in New Delhi and LG Soft India, LG's largest overseas software research center in Bengaluru, Koo emphasised the importance of the Indian market in LG's long-term vision.

He described the country as a key player in driving the company's "second leap" in a rapidly changing era and strengthening its presence.

Additionally, LG Electronics has been seeking an initial public offering (IPO) on the Indian financial market.

-IANS

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