LG Electronics is expanding its manufacturing footprint in India with a new facility in Sri City-2, Andhra Pradesh. The project involves an investment of approximately USD 600 million and will cover about 247 acres. Commercial production is expected to begin within the next two to three years.
The facility will produce refrigerators, air conditioners, washing machines, televisions, heat exchangers, compressors, and related components. It will complement LG’s existing manufacturing operations in Pune and Noida. The investment was approved by the Government of Andhra Pradesh following the signing of a Memorandum of Understanding between LG Electronics and the state government in November last year.
In addition to LG’s expansion, four Korean suppliers—Ecorea and Kuroda Electric India Pvt. Ltd. (EKI), Haeng Sung India Pvt. Ltd., Kyungsung Precision India Pvt. Ltd., and Taesung Electronics India Pvt. Ltd.—have also received approval for a special incentive package from the state government. These vendors are collectively expected to invest between USD 96 million and USD 120 million to establish manufacturing facilities in India.
Ecorea and Kuroda Electric, which have operated in India for nearly 15 years, specialize in plastic injection molding for home appliances. Haeng Sung manufactures printed circuit boards (PCBs) and wiring harnesses, Kyungsung Precision produces molds for rubber and plastic parts, and Taesung Electronics manufactures electrical equipment and specialized dies. The three latter companies registered their Indian subsidiaries within the last five months. Inchon-based Mirae Techwin Co., Ltd. is also exploring plans to set up operations in India.
A representative from LG Electronics stated, “The proximity of suppliers will help us enhance our production efficiency and reduce lead times.”
India’s Production-Linked Incentive (PLI) scheme, which provides financial benefits for companies setting up manufacturing operations and boosting output, has contributed to making India a preferred destination for electronics and white goods manufacturing.
LG Electronics is a South Korea-based manufacturer of home appliances, consumer electronics, and components. The company operates multiple production facilities globally, supplying a range of products across various markets.