LG to double capacity in 5 years; make India its global production hub

LG ELECTRONICS INDIA will double manufacturing capacity in five years as it seeks to make the country a global manufacturing hub, Sanjay Chitkara, chief sales officer, said on the sidelines of its IPO event on Wednesday.

- VIVEAT SUSAN PINTO

The company is setting up its third manufacturing plant at Sri City in Andhra Pradesh, at an investment of $600 million (over €5,000 crore), targeting all product lines.

The plant will begin production by November 2026, strengthening its manufacturing presence, which includes two existing plants in Noida and Pune, respectively.

The Sri City plant will be funded through internal accruals as the company has been "reinvesting" for growth in its business over the years. LG has been in India since 1997 and is market leader across consumer durable categories.

“While domestic demand remains robust in the country, we also want to position India as an alternate manufacturing hub, catering to more export markets," Chitkara said. “Labour costs are competitive and we are able to produce at scale,"he said.