LG’s Commitment to Rapidly Expanding Indian Market
LG Electronics is set to enhance its presence in India with the planned establishment of its third manufacturing plant. According to industry reports, the South Korean electronics giant is considering a new home appliance production facility in Sri City, Andhra Pradesh, with construction expected to begin in the first half of 2026. This marks another step in LG’s ongoing commitment to the rapidly expanding Indian market, which has become a focal point for global manufacturers.
Strengthening its Position in India Amid IPO Speculations
The new plant is part of LG’s broader strategy to increase its manufacturing footprint in India, aligning with the Indian government’s “Make-in-India” initiative. This move follows the inauguration of a new INR 2 billion (approximately US$23.69 million) production line in Pune in early 2023, as well as the launch of air conditioner compressor manufacturing in Greater Noida. Additionally, LG is reportedly exploring the possibility of an IPO for its Indian subsidiary, inspired by Hyundai Motor’s recent success in launching a similar initiative for its Indian operations.
Robust Performance Drives Expansion Efforts
LG Electronics India’s strong financial performance is also driving these expansion plans. For the first half of 2024, the subsidiary reported its highest-ever sales and net profit, with a 14% year-over-year increase in sales and a 27% rise in net profit. This positive growth trajectory is in line with LG’s goal of reaching KRW 100 trillion (about US$75 billion) in global electronics revenue by 2030.
