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Thu, 15 Oct 2026
07:37:35 am
Thu, 15 Oct 2026
07:37:35 am
Rudransh Sangwan
Published at: September 25, 2026, 6:31 AM
Synopsis
LG Electronics will start production at its Rs 5,000 crore Sri City plant by December 2026, adding capacity for ACs, compressors and appliances.
LG Electronics plans to start production at its Rs 5,000 crore manufacturing plant in Sri City, Andhra Pradesh, by December 2026. Air conditioners will be the first products made at the facility, followed by AC compressors, refrigerators and washing machines.
The 247 acre plant will be LG Electronics India's third manufacturing facility, after its plants in Greater Noida and Pune. The company plans to invest around $600 million, or Rs 5,000 crore, over four years.
The plant is expected to nearly double LG India's current manufacturing capacity of 14.5 million units. Production capacity will be added in phases over the next three financial years, with the full project targeted for completion by FY30.
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The new facility is being built to meet rising demand in southern India. The region accounts for around 38% of LG Electronics India's business, according to Sanjay Chitkara, Director and Co Chief Sales and Marketing Officer at LG Electronics India.
The company said the facility will also help reduce logistics costs and improve the time taken to deliver products to customers in the region.
Construction of the Sri City plant started in May last year. LG expects the facility to create around 1,495 direct jobs and support the development of an ancillary manufacturing ecosystem around the plant.
| Particulars | Details |
|---|---|
| Location | Sri City, Andhra Pradesh |
| Investment | Rs 5,000 crore |
| Investment in dollars | Around $600 million |
| Land area | 247 acres |
| Production start | By December 2026 |
| Current manufacturing capacity | 14.5 million units |
| Project completion target | FY30 |
| Direct jobs expected | Around 1,495 |
| First products | Air conditioners |
The Sri City facility is expected to be roughly twice the size of LG's existing plant, according to Chitkara. The additional capacity will be introduced in phases rather than coming online all at once.
Air conditioners will be the first major product category to roll out from the Sri City plant. LG plans to add AC compressors, refrigerators and washing machines as production expands.
The company also plans to manufacture AC compressors at the facility. Chitkara said LG is among the few manufacturers in India that produces compressors in house, while a large part of the industry continues to depend on imports.
Local compressor production could give LG greater control over its manufacturing supply chain. For the Sri City facility, it also forms part of the company's wider plan to increase production capacity within India.
The expansion comes as LG continues to build its presence across different consumer electronics categories. Its portfolio includes air conditioners, refrigerators, washing machines and other home appliances.
Readers tracking the company's market performance can also see our earlier coverage of LG Electronics India stock growth factors, which looks at the factors affecting the listed company's business and stock.
LG Electronics is also increasing exports from its Indian operations. The company now ships products to around 66 countries, compared with 47 countries when it went public last year.
LG Electronics India is set to complete one year as a listed company in October 2026. Its shares debuted on the BSE and NSE on October 14, 2025, after the company raised Rs 11,607 crore through its IPO.
The company plans to export its essential series products to 22 countries in 2026. It also plans to export its new semi automatic washing machines to more than 10 countries from 2027.
The expansion of exports means the Indian manufacturing network is being used not only to serve domestic demand but also as a production base for overseas markets.
LG's wider manufacturing and export plans can also be viewed alongside other electronics companies expanding their Indian operations. Our earlier coverage of Bharat Electronics order growth provides another example of how Indian manufacturing capacity is being expanded across different industries.
Alongside manufacturing expansion, LG is adding products across several categories. The company is moving into areas such as large capacity refrigerators, premium washing machines, dishwashers, VRF systems and chest freezers.
LG has also launched 15 new semi automatic washing machine models, with capacities ranging from 8 kg to 12 kg. These machines are being manufactured at the company's Greater Noida facility.
Semi automatic washing machines account for around 50% of LG's washing machine volumes in India and around 32% to 35% of value, according to Chitkara.
LG sells around 2 million to 2.2 million semi automatic washing machines every year in India. The company continues to spend on new designs, tooling and technology for this category.
The latest models include features such as Dual Spin Shower, Wind Jet Dry+, Toughened Glass Lid, Roller Jet Pulsator+, Ultra Scrub Wall and Rat Away Technology.
The Sri City facility gives LG additional manufacturing capacity at a time when the company is also expanding its product range and exports from India.
The location is particularly relevant to LG because southern India contributes around 38% of its business. A manufacturing base closer to this market could help reduce the distance between production and customers while lowering logistics costs.
The planned capacity increase is also significant compared with LG India's existing manufacturing base. The company currently has capacity for around 14.5 million units, and the Sri City facility is expected to nearly double this capacity as production is added in phases.
The investment also has an employment component, with around 1,495 direct jobs expected at the facility and additional activity expected in the surrounding supplier and manufacturing ecosystem.
The next major milestone is the planned start of production by December 2026. The pace at which production is added across air conditioners, compressors, refrigerators and washing machines will be important for the company's manufacturing expansion.
LG's export plans will also be worth tracking as the company expands shipments from India to 66 countries and plans further exports of its essential series and semi automatic washing machines.
The company's ability to use the additional capacity across domestic and export markets will determine how quickly the new facility becomes part of its broader manufacturing network.
LG Electronics India is a consumer electronics and home appliances company that operates in categories including air conditioners, refrigerators and washing machines. Its Indian manufacturing network currently includes facilities in Greater Noida and Pune, with the Sri City plant set to become its third manufacturing facility.
LG Electronics plans to start production at its Sri City plant in Andhra Pradesh by December 2026. Air conditioners are expected to be the first products manufactured at the facility.
LG Electronics plans to invest around Rs 5,000 crore, or about $600 million, in the Sri City facility over four years. The project is targeted for completion by FY30.
LG Electronics plans to manufacture air conditioners first, followed by AC compressors, refrigerators and washing machines. The facility will add production capacity in phases.
The Sri City facility covers 247 acres and is expected to be roughly twice the size of LG's existing plant. It is expected to nearly double LG India's current manufacturing capacity of 14.5 million units.
LG Electronics expects the Sri City plant to create around 1,495 direct jobs. The facility is also expected to support an ancillary manufacturing ecosystem around the plant.
LG Electronics India currently exports products to around 66 countries, up from 47 countries when the company went public. It plans to export its essential series to 22 countries in 2026 and new semi automatic washing machines to more than 10 countries from 2027.
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