LG India begins work on $600 million Andhra plant

LG Electronics India Ltd. (LGEIL) has begun constructing its third manufacturing facility in India, located in the industrial area of Sri City, Andhra Pradesh, the company said on Thursday.

The plant is expected to begin operations by the end of 2026.

The latest facility is planned expand LG’s production capacity in the country and is estimated to generate about 1,495 direct jobs. The Andhra Pradesh government has allotted 247 acres of land for the project.

Over the next four years, LG plans to invest around $600 million (Rs5,001 crore), with potential for attracting ancillary industries to the region.

The company currently has two other plants in Greater Noida, Uttar Pradesh, and Pune, Maharashtra.

The Sri City plant will manufacture a range of products including AC compressors, refrigerators, washing machines, and air conditioners, the company said.

The move is aimed at further localizing production and improving supply chain efficiency across southern India, to meet increasing domestic demand.

The groundbreaking ceremony was attended by state IT and human resources minister Nara Lokesh alongside LG executives from South Korea and India.

From Amaravati, Andhra Pradesh chief minister N Chandrababu Naidu said, “We wholeheartedly welcome LG Electronics to Sri City, Andhra Pradesh. The announcement of LG Electronics’ new manufacturing plant in Andhra Pradesh is a testament to Andhra Pradesh’s progressive policies with regards to being industry friendly, ease-of-doing-business, fostering innovation and being home to world-class manufacturing hubs. A well-developed industrial ecosystem, great connectivity and pro-business environment makes Sri City the best location for the new plant.”

Lokesh said, “We are delighted that LG Electronics has chosen Sri City for its third manufacturing facility in India. This is a testament of LG Electronics’ commitment to India and I am confident that this expansion into Andhra Pradesh will address the potential growth in demand for LG products across India.”

“We are taking yet another important first step toward enhancing our partnership with India and contributing to its economic growth,” said Lyu Jae-cheol, president of the LG Home Appliance Solution Company. “The construction of our third manufacturing plant will complement our existing production facilities in Noida and Pune and marks a new milestone in our journey in India. This brand-new facility will create more jobs and increase local production.”