- Published 2026.11.05 20:31
Third manufacturing base in Sri City, Andhra Pradesh
Compressor line to start in late November, expanding to home appliances and auto parts
LG Electronics' third manufacturing plant in Sri City, Andhra Pradesh, India, will begin full-scale operations late this month. The company will be able to respond to home appliance demand in southern India while strengthening cost competitiveness through local parts production.
According to Indian business media Moneycontrol on Nov. 5, LG Electronics' Indian subsidiary is expected to start manufacturing operations at the new Sri City plant in late November or early December. The first facility to go live is an air conditioner compressor production line.
The Sri City plant, which broke ground in May last year, is LG Electronics' third production base in India after Greater Noida in the north and Pune in the midwest. LG Electronics plans to invest $600 million (about 840 billion won) in the plant over the next four years. The facility, built on a site of about 1 million square meters, will gradually expand production from air conditioner compressors to room air conditioners, washing machines, and refrigerators. When all lines are completed in 2029, it will have annual production capacity of 1.5 million air conditioners, 2 million compressors, 850,000 washing machines, and 800,000 refrigerators.
The Sri City plant is a key base for LG Electronics' push into the southern Indian market and logistics efficiency. Southern India accounts for about 38% of LG Electronics' local business, but existing plants in the north and midwest created physical distance in product supply. The new plant will allow the company to respond quickly to demand in the south and reduce logistics costs.
Producing compressors, the power source of air conditioners, locally is advantageous for cost reduction. The Indian home appliance industry currently relies on imports for a significant portion of compressor volume. Through the new plant, LG Electronics can increase the self-production ratio of key components, lower import dependence, and improve profitability.
The site will expand beyond home appliances to become a complex manufacturing hub encompassing automotive electronics components. LG Electronics' Indian subsidiary board approved on Nov. 5 a plan to enter the automotive electronics business, including in-vehicle infotainment (IVI), telematics, and advanced driver assistance systems (ADAS). These electronics components are also expected to be produced at the Sri City plant.
Meanwhile, the Indian domestic market has become a major contributor to LG Electronics' earnings. LG Electronics' Indian subsidiary posted revenue of 73.8 billion rupees (about 1.22 trillion won) and net profit of 4.89 billion rupees (about 81 billion won) in the third quarter (July-September) of this year. Revenue rose 19.5% and net profit rose 25.7% from a year earlier.
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
