LG Electronics India has commenced construction on a Rs 5,000 crore manufacturing facility in Sri City, Andhra Pradesh, marking a milestone under the state’s industrial development initiative. The foundation stone was laid by Andhra Pradesh IT Minister Nara Lokesh on 08 May, 2025.

The new plant, established on a 247-acre land parcel allocated by the state government, is expected to start operations in 2026, beginning with the production of air conditioners. Over the following years, the plant will gradually expand its output to include washing machines, refrigerators, and air conditioner compressor lines, with full-scale production planned by 2029. Once fully operational, the factory will have the capacity to manufacture 1.5 million air conditioners, two million air conditioner compressors, 8,50,000 washing machines, and 8.00,000 refrigerators annually.

The Andhra Pradesh government, under its manufacturing policy, has extended a suite of incentives to LG Electronics India. The plant is anticipated to create approx. 1,500 direct and around 10,000 indirect employment opportunities. 

In addition to LG’s own investment, four of its key vendors are also setting up base in Sri City, with a cumulative investment of Rs 839 crore, further bolstering the industrial ecosystem of the region.