A Bold Expansion Plan
LG Electronics India has announced a massive expansion plan that will see its manufacturing capacity double over the next five years. The company is setting up a new plant at Sri City in Andhra Pradesh with an investment of 600 million dollars, over Rs 5,000 crore. The facility will begin production by November 2026 and will cater to all product categories, strengthening LG’s already strong manufacturing presence in India. The investment will be funded through internal accruals as the company continues to reinvest profits back into its growth.
Strengthening India’s Position as a Manufacturing Hub
LG India has been present in the country since 1997 and is already a market leader across several consumer durable categories. With the new plant, LG aims not only to meet the rising domestic demand but also to position India as an alternate global manufacturing hub. According to chief sales officer Sanjay Chitkara, competitive labour costs and large scale production capabilities make India the ideal base for exports. The company already exports to 47 countries, including key markets in Asia, West Asia, and Africa, and now plans to expand into Europe. Exports currently contribute six percent of LG India’s revenue and grew 45 percent year on year in the last 12 months.
Strong Financial Performance
LG India ended FY25 with a revenue of Rs 24,367 crore and a profit of Rs 2,203 crore, representing growth of 14.12 percent and 12.76 percent respectively compared to the previous year. The company continues to pay royalties of 2.3 percent of sales for most product lines and 2.4 percent for LCD TVs and monitors. With production quality at international standards, LG is confident of tapping developed markets with premium products in addition to expanding its footprint in emerging economies.
Driving Domestic Growth and Consumer Demand
While exports are a big focus, LG is equally committed to the Indian market. The company operates 777 brand shops and 16 regional offices across the country and is targeting tier 2 and tier 3 markets for deeper penetration. Demand for premium products has been accelerating, and the recent GST rate rationalisation has encouraged both upgrades by existing customers and new purchases by entry level buyers. This has created a positive shift in consumer sentiment after months of cautious spending.
Market Leadership and Localisation
LG has a strong leadership position in consumer durables, holding 27.5 percent market share in televisions, 29.9 percent in refrigerators, and 33.5 percent in washing machines. The company has also been steadily increasing its localisation levels, which currently stand at 54 percent and rise by about 3 percent each year. This move aligns with the government’s Make in India initiative and strengthens the domestic supply ecosystem.
The Bigger Picture
With its bold investment in the Sri City plant, LG is reaffirming its long term commitment to India. The move not only supports the country’s vision of becoming a global manufacturing hub but also sets the stage for stronger exports, higher localisation, and deeper market penetration. For consumers, it means greater affordability, more choice, and better access to premium products as LG continues to expand its reach.
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