LG Electronics to Invest $600 Million in New India Plant to Boost Production

LG Electronics is gearing up for a major expansion in India with a $600 million investment to build a new manufacturing facility. This move marks a significant step in the company’s long-term strategy to strengthen its production capabilities, expand its B2B business, and lead the premiumisation of consumer electronics in one of its fastest-growing markets.

Expanding Production with a New Mega Plant

The company is setting up its third manufacturing plant in Sri City, Andhra Pradesh, which will be around three times larger than its existing two facilities. Construction has already begun, with production expected to start by Diwali next year. The project will be completed in phases by 2029, supporting LG’s goal to scale up output and meet growing demand across India’s expanding consumer base.

IPO Launch and Growth Vision

Alongside this investment, the company’s IPO opened for subscription on October 6, aiming to raise ₹11,607 crore through an offer for sale. The price band has been set between ₹1,080 and ₹1,140 per share, reflecting a market capitalisation of around ₹77,000 crore at the upper end. 

The offering provides investors with an opportunity to participate in LG’s next phase of growth, driven by its strong domestic operations and premium product line.

Strengthening the B2B Portfolio

Beyond consumer products, LG is also expanding its B2B portfolio, which includes HVAC systems, information display panels, and e-blackboards. The focus is to tap into the rapidly growing commercial and industrial demand for energy-efficient solutions and smart technologies across India’s urban and semi-urban markets.

Driving Premiumisation and Localisation

Premiumisation remains a key pillar of LG’s India growth strategy. The company expects the premium product segment, currently accounting for about 17% of the market, to rise to 25–27% over the coming years. With rising disposable incomes and a growing preference for high-end appliances, LG aims to capture a larger share of this expanding segment.

At the same time, the company continues to increase localisation, producing over 50% of its components and subassemblies in-house. This not only enhances cost efficiency but also strengthens supply chain resilience, improving margins and ensuring greater control over quality and innovation.

Read more:Lenskart Secures SEBI Nod for IPO; Plans Mid-November Listing

Conclusion

With a clear focus on production expansion, B2B growth, and premiumisation, LG’s latest investment signals a confident push to cement its leadership in India’s electronics industry. 

As the new plant nears completion, the company is poised to unlock fresh opportunities in both the consumer and business segments, marking the beginning of an ambitious new growth chapter.

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