LG Electronics has broken ground on its third home appliance manufacturing plant in India with a $600 million investment, expanding its production footprint in one of the world’s fastest-growing consumer markets.
The new factory in Sri City, an industrial hub in Andhra Pradesh, will initially focus on air conditioner production starting in late 2026. By 2029, it will expand to include washing machines, refrigerators, and compressors with an annual capacity of 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners and 2 million compressors.
The investment comes as LG attempts to strengthen its position in India, which surpassed China as the world’s most populous nation and became the fifth-largest economy in 2022. Despite its scale, appliance penetration in India remains low, with washing machines in just 30% of homes and air conditioners in 10%.
LG’s Indian operations posted 331.8 billion won ($237 million) in net profit on sales of 3.79 trillion won in 2024, representing increases of 43.4% and 14.8% respectively from the previous year.
The company is also seeking an IPO of its Indian subsidiary to raise up to 2 trillion won, though sources indicate this may be delayed due to global market volatility.
