LG Electronics is set to expand its manufacturing footprint in India with plans for a third factory, its first major expansion since completing the Pune facility in 2006. The decision is in response to surging domestic demand in India’s fast-growing home appliance market. Having entered the Indian market in 1997, LG operates two factories in Noida, Uttar Pradesh, and Pune, Maharashtra.

The Noida facility produces a range of home appliances like refrigerators, washing machines, and air conditioners, while Pune specialises in similar appliances and televisions. In 2022, LG invested Rs two billion (approx. 33 billion won) to expand Pune's production capabilities, adding a line for side-by-side refrigerators, which increased the annual capacity by 1,00,000 units. India’s home appliance penetration presents a significant growth opportunity. 

To further capitalise on this growth, LG is also exploring subscription-based home appliance services tailored to India’s evolving consumer preferences. Additionally, its Indian factories play a vital role as export hubs for the Middle East and Africa, which will strengthen LG’s position in global markets. 

In another development, Hyundai Motor India (HMI) recently raised USD 3.23 billion through its IPO, funding electric vehicle (EV) initiatives and software development. The company plans to launch its first locally manufactured EV, the Creta SUV, in January 2024. Similarly, CJ Logistics has expanded into India by acquiring a 50 percent stake in Darcl Logistics, which reported revenue growth in the first half of 2023.