LG Electronics Builds Rs 5,000-Crore Factory in Andhra Pradesh

LG Electronics, a South Korean consumer electronics giant is well known company. LG Electronics builds a huge factory , around Rs 5,000-crore home appliance facility at Sri City, Andhra Pradesh. Its third factory in India, this is an affirmation of its decision to expand its presence in one of the fastest-growing consumer economies in the world.

A Pioneering Investment in South India

LG Electronics Builds Rs 5,000-Crore Factory:

LG’s new plant is being constructed on a 1-million-square-meter plot of land, and it is one of the biggest electronics investments in South India. The factory will be finished by 2026 and will be manufacturing.

800,000 refrigerators

850,000 washing machines

1.5 million air conditioners

2 million air conditioner compressors

Government Support and Job Creation
The state government of Andhra Pradesh has donated 247 acres of land to the project, which is set to create 1,900 direct and indirect employment opportunities. Four LG suppliers are also making a foray into India, investing Rs 839 crore in the Sri City industrial corridor.

Production Schedule and Expansion Plans
Manufacturing in the plant will start from the second half of 2026, starting with air conditioners, followed by washing machines, refrigerators, and compressors up to 2029. At its full capacity, LG’s total annual production in India will be:

2 million TVs

3.6 million refrigerators

3.75 million washing machines

4.7 million air conditioners

Strengthening Local and Export Markets

This plant is falling under Andhra Pradesh’s new policy of manufacturing electronics, and LG is investing in its supply chain infrastructure. Apart from catering to India’s expanding market, the plant will supply products to Bangladesh and the Middle East as well, further strengthening India’s position as a global production hub.

LG’s IPO Plans and Future Growth Strategy
LG Electronics is going to list its Indian unit on the stock exchange through an Rs 15,000 crore IPO. Though the listing had been listed in May 2025 previously, the listing has been delayed on account of market volatility.
LG’s investment in Andhra Pradesh as part of a well-thought-out strategy reflects its interest in the electronics market and growing consumers base in India. The facility will help towards growing employment, increasing manufacturing capability, and growing the role of India in world value chains.