The Minister lays foundation for Rs 5,001 cr LG facility
PNS|Satyavedu
In a significant step towards establishing Andhra Pradesh as a global electronics manufacturing hub, Minister for Education, IT, and Electronics, Nara Lokesh, laid the foundation stone for LG Electronics’ new state-of-the-art facility at Sri City near Tirupati.
The $600 million (Rs 5,001 crore) investment by LG Electronics is the largest single-stage electronics investment in South India and represents the first major foreign direct investment (FDI) under the newly formed NDA government. This move is expected to enhance Andhra Pradesh’s appeal as a destination for global investors, further advancing its shift from “Made in Andhra” to “Made for the World.”
“This is not just the beginning of a manufacturing unit; it’s the foundation for Andhra Pradesh’s future,” said Lokesh. “It is a milestone in India’s industrial and technological journey, where innovation and investment come together to shape tomorrow.”
The State government has allocated 247 acres to LG Electronics India Ltd. (LGEIL) at Sri City for this mega facility. The plant, to be developed over one million square metres with a built-up area of 220,000 square metres, will become operational in phases. It is expected to generate around 1,900 direct and indirect employment opportunities.
Production will begin with air conditioners in 2026, followed by phased manufacturing of washing machines, refrigerators, and compressor lines through 2029. Once fully operational, the facility will have the capacity to produce 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million compressors annually.
“The LG facility will produce advanced, smart, and energy-efficient home appliances. This initiative goes beyond manufacturing—it’s about job creation, youth empowerment, and shaping the future,” Lokesh said. In addition to LG’s investment, key vendor partners such as Ecoria, Kuroda Electric, Heng Sung India, Kyungsung Precision, and Taesung Electronics will invest another Rs 839 crore, generating approximately 690 more jobs. This cluster-based approach is expected to drive the growth of a robust electronics manufacturing ecosystem in the region.
By localising production of vital components such as compressors and heat exchangers, the facility will reduce import dependency and strengthen LG’s supply chain within India.
