SRI CITY, INDIA — LG Electronics India Ltd. (LGEIL), a subsidiary of South Korea’s LG Electronics, has officially begun construction on its new state-of-the-art manufacturing facility in Sri City, Andhra Pradesh. The strategic investment underscores LG’s growing commitment to India as a regional production and export base, amid shifting global trade dynamics and increasing demand for electronics in South Asia.
The new facility, spanning over 100 acres, is set to become one of LG’s largest integrated manufacturing complexes outside Korea. It will produce a wide range of consumer electronics and appliances, including televisions, refrigerators, washing machines, and air conditioners. The company estimates the first phase of the plant will be operational by mid-2026, with an initial investment of ₹3,500 crore (approx. $420 million USD) and the potential to create over 4,000 direct jobs.
Why India?
LG’s decision to deepen its manufacturing footprint in India over other Asian countries is rooted in multiple strategic factors:
- Expanding Domestic Market: India is now one of the fastest-growing consumer electronics markets globally, with a burgeoning middle class and increased digitization driving demand for smart appliances and home entertainment systems. According to industry estimates, India’s electronics market is expected to surpass $300 billion by 2026.
- “Make in India” Incentives: The Indian government’s Production Linked Incentive (PLI) scheme and other manufacturing-friendly policies have played a pivotal role in attracting multinational companies. LG’s new facility will benefit from tax rebates, infrastructure support, and streamlined compliance procedures.
- Geopolitical Diversification: Amid rising labor costs in China and trade tensions between Beijing and Washington, many global firms are seeking to diversify their supply chains. India presents a politically stable and cost-effective alternative, with favorable trade relations across multiple markets.
- Logistical Advantage: Sri City, part of Andhra Pradesh’s industrial corridor, offers excellent logistics infrastructure, including proximity to major ports and connectivity to southern and eastern markets.
Statements from Leadership
Speaking at the groundbreaking ceremony, LGEIL Managing Director Hong Ju Jeon remarked,
“India is not just a market — it is a strategic hub for innovation, manufacturing, and exports. This new facility reinforces LG’s long-term vision to serve both Indian consumers and global demand through high-quality, locally produced goods.”
Andhra Pradesh Chief Minister Y. S. Jagan Mohan Reddy, who also attended the event, highlighted the significance of the investment:
“LG’s expansion is a testament to India’s rising industrial capacity. This plant will not only boost employment but also reinforce the state’s position as a global manufacturing destination.”
Looking Ahead
Beyond meeting domestic demand, LG plans to use the Sri City plant as an export base to South Asia, the Middle East, and Africa. The company is also exploring collaborations with Indian tech startups and universities to build R&D capacity for future-ready smart appliances.
With this move, LG joins a growing list of multinational corporations betting big on India’s ascent as a global manufacturing powerhouse — a trend expected to reshape Asia’s economic landscape in the years to come. (zai)