LG Electronics India Begins Construction of New Plant in Andhra
LG Electronics India Limited has commenced construction of its new home appliances manufacturing plant in Sri City, Andhra Pradesh. The company will be investing Rs. 5,001 crore for the construction of this new plant over the next 4 years.
The plant is expected to begin production by the end of 2026.
LG Electronics’ Third Manufacturing Plant in India
LG Electronics’ upcoming plant in Sri City will be its third in India. The company already has two manufacturing plants, one in Greater Noida and the other in Pune.
Commenting on this development, Mr. Nara Lokesh, Minister for Information Technology, Electronics and Communications, Government of Andhra Pradesh said “We are delighted that LG Electronics has chosen Sri City for its third manufacturing facility in India…this expansion into Andhra Pradesh will address the potential growth in demand for LG products across India”.
Plant to Start off with AC Manufacturing, Roll out Other Products Subsequently
LG Electronics’ Sri City plant will initially commence operations with the production of air conditioners. This will be followed by a phased rollout of additional product lines, including washing machines, refrigerators, and AC compressors. This subsequent rollout is expected to be complete by 2029.
Once fully operational, the plant will have an annual production capacity of 15 lakh air conditioners & 20 lakh AC compressors, 8 lakh refrigerators, and 8.5 lakh washing machines.
AP Govt. Allots 247 acre for LG’s Plant, 1,500 Direct Jobs to be Created
The Andhra Pradesh government has allocated 247 acre of land in Sri City for the development of LG Electronics’ manufacturing plant. The company expects this plant to generate about 1,495 direct job opportunities.
Mr. Lyu Jae-cheol, President of the LG Home Appliance Solution Company, said, “We are taking yet another important first step toward enhancing our partnership with India and contributing to its economic growth. 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”.
LG Electronics India’s IPO Plans Delayed Amid Market Considerations
LG Electronics India Limited had filed a Draft Red Herring Prospectus (DRHP) for an Initial Public Offering (IPO) with the Securities and Exchange Board of India (SEBI) in December 2024. However, according to recent media reports, this IPO has been delayed and the final decision regarding LG Electronics’ IPO will depend on prevailing market conditions and other relevant factors.
Some initial media reports suggested that LG targeted to raise approximately Rs. 15,000 crore through the IPO. The company’s DRHP mentioned that the IPO was an offer for sale of 10.18 crore shares. No fresh issue of shares was indicated in this DRHP as a part of this IPO. The total issue size, however, had not been officially disclosed.
About LG Electronics India Limited: LG Electronics India Ltd. is the Indian subsidiary of South Korea’s LG Electronics Inc. LG Electronics India, headquartered in Greater Noida, was founded in 1997.
