LG Electronics is preparing to establish a third manufacturing facility in India. It is LG’s first expansion since completing its Pune plant in 2006. A company official stated that the company plans to enhance production capacity to address the increasing demand in India’s thriving home appliance market. However, the location and construction timeline details are yet to be finalized.
With the initiative, LG is developing a strategy to strengthen its foothold in India to support its broader growth ambitions. Reports suggest the expansion may coincide with a potential IPO of LG’s Indian subsidiary.
Despite these efforts, surging demand in India’s home appliance market has led LG to consider building a third manufacturing plant. Reports suggest that the new facility could be located in Sri City, Andhra Pradesh, with construction potentially beginning in the first half of 2026. While no final decisions have been announced.
The growing number of nuclear families, increased workforce participation by women, and rising interest in modern appliances like dishwashers further fuel demand.
In addition to serving the domestic market, LG’s Indian facilities act as export hubs for the Middle East and Africa.
LG’s strong market position in India, particularly in OLED TVs and air conditioners, has supported consistent revenue growth. Analysts predict its subsidiary’s annual revenue will surpass $2.87 billion (INR 4 trillion) by the end of the year.
South Korean companies are increasingly strengthening their foothold in India by expanding operations and raising funds through public offerings. CJ Logistics, for instance, entered the Indian market in 2017 by acquiring a 50% stake in Darcl Logistics, a leading transportation firm.
Following Hyundai Motor India’s successful IPO in August, LG Electronics is reportedly evaluating a similar move for its Indian subsidiary. The company has a long-term target of achieving KRW100 trillion (approximately $75 billion) in annual electronics revenue by 2030. LG Electronics India also recorded impressive growth in the first half of 2024, achieving a 14% year-on-year increase in sales to KRW2.0869 trillion and a 27% rise in net profit to KRW198.2 billion, marking its highest-ever half-year performance.
