LG to invest Rs 5,000 crore in Andhra Pradesh for smart appliance facility

 

Electronics giant LG Electronics India (LGEIL) has announced an investment of ₹5,000 crore in Andhra Pradesh’s Sri City to set up a state-of-the-art facility.

 

The foundation stone was laid by Andhra Pradesh's Minister for Education, IT, and Electronics, Nara Lokesh, in the presence of LGEIL India Managing Director (MD) Hong Ju Jeon and other dignitaries.

 

The government of Andhra Pradesh has provided 247 acres at Sri City to LGEIL for the new plant, which is expected to generate around 1,900 direct and indirect jobs. The 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 will be to the tune of $600 million (about ₹5,001 crore) over four years, and brings with it the potential to bring ancillaries to the region, thereby creating an ecosystem for white goods manufacturing, the statement said. 

 

Lokesh stated that every job created and every innovation launched is paving the way for transforming Andhra Pradesh into a global electronics powerhouse. “This is not just the beginning of a manufacturing unit — it’s the laying of a foundation for the future of Andhra Pradesh,” he said. “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.”

 

The statement said, “The journey from 'Made in Andhra’ to ‘Made for the World’ continues with strength and purpose. This LG unit stands as one of the first major foreign direct investments (FDI) since the formation of the new government in Andhra Pradesh”.

 

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. Production will begin with air conditioners in 2026, followed by a phased rollout of washing machines, refrigerators, and compressor lines through 2029. 

 

The LG facility will produce advanced, smart, and energy-efficient home appliances such as refrigerators, air conditioners, and washing machines. “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,” Lokesh added.

 

The main LG unit is expected to generate 1,500 direct jobs. Additionally, LG’s key vendor partners will invest another ₹839 crore, creating over 690 more jobs. The project will have a significant positive impact on the local economy.

 

By manufacturing key components like compressors and heat exchangers within the state, LG aims to strengthen its supply chain and reduce its dependency on imports. Vendor partners include Ecoria, Kuroda Electric, Heng Sung India, Kyungsung Precision, and Taesung Electronics in this integrated growth journey. 

 

“When global industrial giants align with Andhra’s vision, transformative change becomes inevitable,” Lokesh said. “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.”