LG Electronics is reportedly planning to establish a third plant in India, continuing its recent production expansions in the country. The move aligns with the company's potential IPO of its Indian subsidiary, signaling its commitment to growth in the region.
LG Electronics is reportedly contemplating the establishment of a new home appliance manufacturing facility in India. According to a report by the Herald Business newspaper, cited by Bloomberg, which cites unnamed sources within the industry, the South Korean electronics giant aims to commence construction in the first half of 2026. The potential site for this new plant is suggested to be in Sri City, located in the state of Andhra Pradesh.
Should the plans come to fruition, this would mark LG's third plant in India, expanding its footprint in the burgeoning Indian market. The company is currently exploring various avenues for investment expansion, reflecting the promising growth potential the region offers. However, LG said that no definitive decisions have been made concerning the new facility.
In January 2023, LG Electronics inaugurated an INR2 billion (approx. US$23.69 million) production line for home appliances in its Pune facility as global electronics manufacturers have been investing in India amid Narendra Modi's Make-in-India initiative. In March 2023, the company also inaugurated a local manufacturing line of air conditioner compressors at its Greater Noida manufacturing facility.
Following Hyundai Motor's successful IPO of its Indian subsidiary in August, LG Electronics is reportedly exploring a similar move for its Indian business. The IPO aims to support LG's goal of reaching KRW100 trillion (approx. US$75 billion) in annual electronics revenue by 2030.
In August, LG Electronics India reported its highest-ever half-year sales and net profit for the first half of 2024 and recorded a 14% year-over-year increase in sales, reaching KRW2.0869 trillion, and a 27% increase in net profit to KRW198.2 billion.
