LG Electronics to Begin Production at Sri City Plant in India This December; Local Production Capacity Expected to Nearly Double

【New Delhi, India—Pragya Awasthi, correspondent】LG Electronics will begin operations this December at its 50 billion rupee (706 billion won) production plant under construction in Sri City, Andhra Pradesh, India. The first product to be manufactured will be air conditioners, with production later expected to expand to air-conditioner compressors, refrigerators and washing machines.
According to local media reports on the 23rd, Sanjay Chitkara, a director and co-head of sales and marketing at LG Electronics India, made the remarks in a recent interview with a media outlet.
The Sri City plant, which will be LG Electronics' third production base in India after Greater Noida and Pune, broke ground in May last year. LG Electronics plans to invest approximately $600 million (about 810.4 billion won) in the plant over the next four years. 
Once the Sri City plant is completed, LG Electronics India's production capacity is expected to nearly double in stages, according to local reports. The additional capacity will be added sequentially over the next three fiscal years, with the entire project targeted for completion by fiscal 2030.
Director Chitkara explained that the plant covers 100 hectares, making it roughly twice the size of LG Electronics' existing facilities. The Sri City plant is expected to meet demand in southern India, which accounts for about 38% of LG Electronics' sales, while reducing logistics costs and shortening product launch times. In particular, the plant is reportedly planned to manufacture air-conditioner compressors directly. Chitkara noted that relatively few companies manufacture compressors in India and that much of the industry still relies on imports.
LG Electronics is also strengthening its strategy of using India as both a production base and an export hub. It currently exports products made in India to approximately 66 countries, a significant increase from the 47 countries reported at the time of last year's initial public offering.
LG Electronics is also expanding its premium product lineup and new product categories in the Indian market. Key areas of expansion include large-capacity refrigerators, premium washing machines, dishwashers, VRF systems and chest freezers. In the washing machine segment, it launched 15 new models of semi-automatic washing machines with capacities ranging from 8 kg to 12 kg, produced at its Greater Noida plant.
According to Chitkara, semi-automatic washing machines account for about 50% of LG Electronics' total washing machine sales and 32% to 35% of sales by value. They are a major product category in India, with approximately 2 million units sold annually, and LG Electronics continues to invest in new designs, molds and technology development. 

[email protected] Pragya Awasthi, correspondent Reporter