LG Electronics Breaks Ground on Third Home Appliance Factory in Sricity, India

Groundbreaking Ceremony for New Sricity Plant Held on May 8
$600 Million Investment... Total Floor Area of 220,000 Square Meters
Sequential Production Starting with Air Conditioners at End of Next Year
India, a Key Country in the "Global South"
Rapid Economic Growth Drives High Market Potential

A bird's-eye view of the LG Electronics home appliance factory being built in Sri City, India. Photo by LG Electronics

LG Electronics is building a new home appliance factory in Sricity, Andhra Pradesh, in southern India. This will be the company's third production base in India, following Noida and Pune.

On May 8 (local time), LG Electronics announced that it had held a groundbreaking ceremony for the new factory in Sricity, marking the start of a major expansion of its local production capacity. The event was attended by Ryu Jaecheol, President of the Home Appliance & Air Solution Company, Lee Jaesung, Executive Vice President of the Energy Solution Company, and Jeon Hongjoo, Managing Director of the India subsidiary. From the Indian side, Nara Lokesh, Minister of Human Resource Development, and Thumbalam Guthi Bharat, Minister of Industries, were present, confirming their commitment to cooperation.

The new Sricity factory will cover a land area of 1 million square meters, with a total building area of 220,000 square meters. LG Electronics plans to invest a total of $600 million (approximately 839.1 billion KRW) to gradually establish large-scale production lines. Once completed, the factory will be able to produce 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million compressors for air conditioners annually. Production of air conditioners will begin first at the end of 2026, with washing machine, refrigerator, and compressor production lines to be launched sequentially by 2029.

Through the construction of this new factory, LG Electronics will secure a new production hub not only for India but also for neighboring South Asian countries such as the Middle East, Bangladesh, and Sri Lanka. The company expects the Sricity factory to become a key base for the smooth supply of home appliances across India, as well as to emerging markets in Central and South America and Africa.

The reason LG Electronics is expanding its production in India is to respond to rapidly growing local demand. India currently has the largest population in the world and its GDP growth rate is more than twice the global average, making it one of the fastest-growing countries. LG Electronics believes there is still significant growth potential in India, with the penetration rate of washing machines at about 30% and air conditioners at 10%. The company determined that the existing factories in Noida and Pune would not be sufficient to meet the expected increase in demand, which is why it decided to make additional investments in Sricity.

Product development tailored to the local market is also being pursued. LG Electronics has developed a "convertible refrigerator" that allows the freezer compartment to be used as a refrigerator, catering to India's predominantly vegetarian food culture, and this has been well received by local consumers. The company has also introduced a dedicated washing machine cycle designed to delicately wash thin and soft fabrics such as the traditional Indian sari, continuing to develop technologies that match the lifestyles of Indian consumers.

The company has also established a solid sales and after-sales service network. Currently, LG Electronics operates about 700 official stores and 900 service centers across India, and has set up call centers that provide consultations in 12 regional Indian languages. By localizing its entire system from product sales to after-sales service, LG Electronics is increasing customer trust.

President Ryu stated, "The groundbreaking of the Sricity factory is a decision that reflects LG Electronics' strong commitment to becoming a national brand in India," adding, "Based on a strengthened local supply chain, we will produce innovative products and further solidify our position as India's top home appliance brand."