LG Electronics’ ₹5,000 crore Sri City plant to begin production by Dec 2026

LG Electronics’ ₹5,000 crore manufacturing plant at Sri City in Andhra Pradesh is set to begin production by December 2026, with air conditioners to be the first products to roll out, followed by AC compressors, refrigerators and washing machines, Sanjay Chitkara, Director & Co-Chief Sales and Marketing Officer, LG Electronics India, told Fortune India.

The 247-acre facility will be the Korean consumer electronics major’s third manufacturing plant in India, after Greater Noida and Pune. LG plans to invest around $600 million (or ₹5,000 crore) in the facility over four years. The plant is expected to create around 1,495 direct jobs and support the development of an ancillary manufacturing ecosystem. Construction of the facility began in May last year.

The Sri City plant is expected to nearly double LG India’s manufacturing capacity from the current 14.5 million units, with the additional capacity being added in phases over the next three financial years and the project targeted for completion by FY30.

“The plant is roughly two times bigger than our existing plant,” Chitkara said. The facility will help LG cater to growing demand in southern India, which accounts for around 38% of its business, while reducing logistics costs and improving time to market.

LG will also manufacture AC compressors at the Sri City plant. Chitkara said the company is among the few manufacturers in India with in-house compressor production, as much of the industry continues to rely on imports.

Focus on expanding exports from India

LG is also scaling up exports from India and now ships products to around 66 countries, up from 47 when it went public last year. The company is set to complete a year of its listing on Indian bourses in October 2026, having made its debut on the BSE and NSE on October 14, 2025, after raising ₹11,607 crore through its IPO.

The company plans to export its “essential series” to 22 countries in 2026 and its new semi-automatic washing machines to more than 10 countries from 2027.

“We are continuously increasing our portfolio of exports and scaling up our exports, and it is growing very fast,” Chitkara said.

LG is also expanding its premium portfolio and entering new categories, including large-capacity refrigerators, premium washing machines, dishwashers, VRF systems and chest freezers.

The company has launched 15 new semi-automatic washing machine models, ranging from 8 kg to 12 kg, manufactured at its Greater Noida facility.

Semi-automatic washing machines account for around 50% of LG’s washing machine volumes and 32-35% of value, with annual sales of around 2-2.2 million units in India, Chitkara said.

LG sells around 2-2.2 million semi-automatic washing machines annually in India and continues to invest in new designs, tooling and technology for the category, he said.

The new range features technologies such as Dual Spin Shower and Wind Jet Dry+, along with a Toughened Glass Lid, Roller Jet Pulsator+, Ultra Scrub Wall and Rat Away Technology.