Production will commence with air conditioners in 2026, followed by a phased rollout of washing machines, refrigerators, and compressor lines through to 2029.
Published May 08, 2025 | 4:05 PM ⚊ Updated May 08, 2025 | 6:04 PM
IT Minister Nara Lokesh at LG Electronics ground-breaking ceremony. (Supplied)
Synopsis: Andhra Pradesh IT Minister Nara Lokesh laid the foundation for a $600 million LG Electronics plant in Sri City, Tirupati. Spanning 247 acres, the facility will create 1,900 jobs and manufacture ACs, compressors, refrigerators, and washing machines by 2029.
Andhra Pradesh Information Technology Minister Nara Lokesh on Thursday, 8 May, laid the foundation stone for a US$ 600 million (₹5,001 crore) LG Electronics India Limited (LGEIL) facility in Sri City, a special economic zone in Tirupati.
The state has provided 247 acres of land for the plant, which will cover a site area of 1 million square metres, with a total floor area of 220,000 square metres, and is expected to generate around 1,900 direct and indirect jobs.
The plant will produce advanced, smart, and energy-efficient home appliances such as refrigerators, air conditioners, and washing machines.
Once fully operational, the facility will have an annual production capacity of 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors.
Production will commence with air conditioners in 2026, followed by a phased rollout of washing machines, refrigerators, and compressor lines through to 2029.
“This is not just about manufacturing – it is about shaping the future of how we live. It’s about creating jobs, empowering youth, and transforming lives. We’re not just building factories; we’re building the future of our state,” Lokesh said, speaking after the foundation laying ceremony.
The project is expected to significantly benefit the local economy and enhance the broader electronics ecosystem in the region.
LGEIL’s investment over a period of four years also aims to attract ancillary industries, thereby fostering a white goods manufacturing ecosystem in Andhra Pradesh, according to an official press release.
By manufacturing key components such as compressors and heat exchangers within the state, LG aims to strengthen its supply chain and reduce reliance on imports.
The main LG unit is projected to generate 1,500 direct jobs. In addition, LG’s key vendor partners will invest another ₹839 crore, creating over 690 more jobs.
Vendor partners including Ecoria, Kuroda Electric, Heng Sung India, Kyungsung Precision, and Taesung Electronics will play a crucial role in this integrated development.
Chief Minister N Chandrababu Naidu said the project is among the many initiatives by the state to transform Andhra Pradesh into a global manufacturing hub.
“Delighted to welcome the new manufacturing unit of LG Electronics to Andhra Pradesh! With a combined investment of over ₹5,800 crore and more than 2,500 direct and indirect jobs in Sri City, LG Global and its vendors are partnering with the Government of Andhra Pradesh to transform AP into a global manufacturing hub,” he wrote in a post on X.
“This milestone project has received 100 percent incentives under the first State Investment Promotion Committee (SIPC), marking the beginning of an exciting new chapter for industrial growth in our state.”
Similarly, Lokesh said every job created and every innovation introduced is helping transform Andhra Pradesh into a global electronics powerhouse.
“When global industrial giants align with Andhra’s vision, transformative change becomes inevitable. This is not just the beginning of a manufacturing unit – it is the laying of a foundation for the future of Andhra Pradesh,” he said.
“This project goes beyond industrial development; it marks a milestone in India’s industrial and technological advancement. Where innovation and investment meet, the future is built.”
He continued: “We are committed to providing an enabling environment for industrial growth and advanced innovation. Andhra Pradesh is open for business, eager for innovation, and ready for transformation.”
(With inputs from Raj Rayasam)
