South Korean multinational LG Electronics along with its senior leadership today performed the ground breaking of the new state-of-the-art manufacturing facility in Sri City, near Tirupati for which AP’s Minister for Education, IT, and Electronics, Mr Nara Lokesh laid the foundation stone.
With an investment of over Rs 5,000 crores (approx. USD 600 million), LG Electronics is establishing a world-class facility in Andhra Pradesh, reaffirming global confidence in the state’s investor-friendly policies.
This LG unit stands as one of the first major foreign direct investments (FDI) since the formation of the new government.
Welcoming LG Electronics India Managing Director Mr. Hong Ju Jeon and other key leadership and partners, Mr Lokesh said it was an honor to be part of this landmark event.
“This is not just the beginning of a manufacturing unit—it’s the laying of a foundation for the future of Andhra Pradesh,” said Minister Lokesh and added “This project goes beyond industrial development; it marks a milestone in India’s industrial and technological advancement. Where innovation and investment meet, the future is built.”
Size of New Plant
The government of Andhra Pradesh has provided 247 acres of land at Sri City to LGEIL for the new plant that is expected to generate around 1900 direct and indirect jobs.
This new plant is expected to cover a site area of 1 million square meters, with a total floor area of 220,000 square meters.
LGEIL’s investment in this facility will be to the tune of US$ 600 million over a period of four years and brings with it the potential to bring ancillaries to the region, thereby creating an ecosystem for white goods manufacturing in the State of Andhra Pradesh.
Production will begin with air conditioners in 2026, followed by a phased rollout of washing machines, refrigerators, and compressor lines through 2029.
By manufacturing key components like compressors and heat exchangers within the state, LG aims to strengthen its supply chain and reduce dependency on imports.
“This is not just about manufacturing—it is about shaping the future of how we live. It’s about creating jobs, empowering youth, and transforming lives. We’re not just building factories; we’re building the future of our state,” Mr Lokesh emphasized.
Plant Capacity
The LG facility will produce advanced, smart, and energy-efficient home appliances such as refrigerators, air conditioners, and washing machines.
Once fully operational, the facility will have an annual production capacity of 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors.
Vendor Partners
LG and its partners are bringing cutting-edge technologies to Indian soil—AI-driven manufacturing, smart production processes, and energy-efficient systems.
Vendor partners including Ecoria, Kuroda Electric, Heng Sung India, Kyungsung Precision, and Taesung Electronics will play a vital role in this integrated growth journey.
From land acquisition to construction and full-scale production, the state government will provide comprehensive support at every step.
“We are committed to providing an enabling environment for industrial growth and advanced innovation,” Lokesh added. “Andhra Pradesh is open for business, eager for innovation, and ready for transformation.”
Job Creation
The new plant is expected to have a significant positive impact on the local economy and will enhance the entire electronics ecosystem in the region.
The main LG unit is projected to generate 1,500 direct jobs. Additionally, LG’s key vendor partners will invest another Rs 839 crore, creating over 690 jobs.
The minister thanked LG Electronics for choosing Andhra Pradesh for this prestigious unit and said, “The LG factory will become a dream workplace for aspiring engineers, tech professionals, and future entrepreneurs. Together, we’re not just assembling machines—we’re creating opportunities.”
Sri City
The integrated business city, Sri City has become a lighthouse for industrial progress, and projects like this are shaping the economic future of Andhra Pradesh.
Mr. Srini Raju, Chairman, Sri City, and Dr. Ravindra Sannareddy, Managing Director, Sri City extended accorded a warm welcome to the both the Minister, senior leadership of LG.
Commenting on this occasion Mr. Jaecheol Lyu, CEO, Home Solution, LG Electronics Inc. remarked “Sri City marks a pivotal milestone in LG’s expansion in India. This new plant will enable us to enhance localisation, optimise delivery timelines, and bring cutting-edge LG products closer to Indian consumers. We deeply appreciate the forward-thinking support extended by the Government of Andhra Pradesh.”
