LG Fires Up Indian Manufacturing with $600M Sri City Plant

LG Electronics is intensifying its India operations through a comprehensive growth strategy that includes scaling up manufacturing, expanding its B2B segment, and accelerating the premiumisation of its product portfolio.

As part of this initiative, the company is investing USD 600 million in a new manufacturing facility at Sri City, Andhra Pradesh. The upcoming unit — three times the size of LG’s existing plants — is expected to commence production by Diwali 2026, with full-scale completion slated for 2029.

To improve cost efficiency and supply chain resilience, LG is also increasing localisation, currently producing 54% of components in-house, a figure expected to rise as the new facility becomes operational.

In parallel, the company is expanding its B2B portfolio, with a focus on HVAC systems, e-blackboards, and commercial display solutions, and deepening market penetration in tier-II and tier-III cities.

With India’s USD 41 billion consumer electronics market (excluding mobile phones) projected to grow at a 14% CAGR, LG anticipates a significant shift toward premium products, whose market share is expected to rise from 17% to 25–27% in the coming years.

News by Rahul Yelligetti.