South Korean consumer electronics giant LG Electronics is planning to break ground on its new factory in the southern Indian state of Andhra Pradesh early next month. The Rs 5,001 crore facility in Sri City will manufacture a range of home appliances, including refrigerators, air conditioners, washing machines, televisions, compressors, and heat exchangers. The project is also attracting LG’s component suppliers to the region.
According to local reports, on April 10, the state government approved incentives for LG’s vendors, who plan to invest Rs 839 crore in Sri City (Tirupati district), generating 692 jobs.
As per an Economic Times report, the vendors include firms such as Ecorea, Kuroda Electric, Haeng Sung, Kyungsung Precision, and Taesung Electronics. The report added that at least five Korean component manufacturers associated with LG plan to invest a total of around Rs 1,200 crore in the state, although it did not name the fifth company.
The report also noted that LG aims to begin exporting televisions, refrigerators, and air conditioners to markets in the Middle East, Africa, Asia Pacific, and the United States.
Currently, LG Electronics has manufacturing facilities in Noida and Pune. According to the company’s draft red herring prospectus (DRHP) filed in December, its Noida facility had an installed capacity of 7.4 million units in 2024, with a production volume of 1.59 million units and a capacity utilization of 86.03%. The Pune facility had a capacity of 6.59 million units, with a production volume of 1.14 million units and a utilization rate of 69.02%.
Samsung’s India Expansion Plan
LG’s South Korean rival, Samsung, is also expanding its manufacturing presence in India. According to Reuters, citing a state minister, Samsung is investing Rs 1,000 crore (approximately $117 million) to upgrade its facility near Chennai, which currently produces refrigerators, televisions, and washing machines.
This expansion is expected to generate 100 new jobs, raising the total workforce at the facility to over 2,000 employees. The Indian market contributed to 20% of Samsung’s $12 billion sales in the country during the 2022–23 fiscal year.
The ET report suggests that Samsung’s expansion is likely to draw its suppliers to India as well.
In addition to the Chennai plant, Samsung operates manufacturing units in Noida and Sriperumbudur. The Noida plant makes smartphones, tablets, and refrigerators, while the Sriperumbudur facility focuses on televisions and other home appliances. Samsung also has design and R&D centers in Noida and Bengaluru.
