LG Electronics' third manufacturing plant in India appears increasingly likely to launch ahead of schedule, boosting the company's production capacity to strengthen its position both in the local market and across the broader Global South supply chain.
Construction on LG's Sri City plant in Andhra Pradesh, which broke ground in May last year, has already surpassed 75% completion on some buildings this month. Reaching three-quarters completion just 14 months after groundbreaking marks a notably fast pace, and local sources suggest trial operations could begin as early as the start of the fourth quarter.
“The LG Electronics Sri City plant, set to begin production before the end of the year, exemplifies our commitment to the 'Speed of Doing Business,'” said Nara Lokesh, Andhra Pradesh's Minister for Human Resource Development.
The Sri City facility will be LG's third production base in India, following its plants in Noida and Pune. Spanning 1 million square meters with 220,000 square meters of floor space, the plant represents an investment of roughly 900 billion KRW. LG plans to use the expanded capacity as a key production base for locally tailored B2B components as well as India-specific home appliances, including its “Essential Series” lineup.
The plant is expected to significantly strengthen LG's foothold in the HVAC (heating, ventilation, and air conditioning) market in particular. LG has positioned India as its HVAC hub for the Global South, having already sold 1 million air conditioning units there in the first quarter of this year alone.
Once the Sri City plant is fully operational, LG's combined annual AC production capacity in India will reach roughly 4.7 million units--adding 1.5 million units to the existing capacity at the Noida and Pune plants. That would make India LG's largest production base globally for air conditioners. The plant will also add 2 million units of compressor manufacturing capacity, further reinforcing India's role not just for domestic demand, but as an export hub to global markets.
White goods production is also set to expand. The Sri City plant's annual capacity for large appliances is projected at 800,000 refrigerators and 850,000 washing machines. Once complete, LG's combined annual production capacity in India will reach 2 million TVs, 3.6 million refrigerators, 3.75 million washing machines, and 4.7 million air conditioners.
LG listed its Indian subsidiary on the local stock exchange in October last year, announcing plans to establish itself as a “national brand” in the country. At the time, the company outlined three localization pillars: “Make for India,” “Make in India,” and “Make India Global.” The Sri City plant's launch is seen as an extension of that localization strategy, with analysts noting that the capacity expansion also aligns with efforts to boost enterprise value following the listing.
Competition in India's home appliance market is intensifying as Chinese manufacturers such as Haier and Midea ramp up local production and expand their distribution networks.
“Ramping up local production at the Sri City plant should help LG solidify its competitive edge,” said one home appliance industry source. “If expanded production capacity in India translates into higher export volumes, it could also accelerate LG's push into neighboring emerging markets like the Middle East, Africa, and Southeast Asia.”
