In a significant boost to the state’s industrial landscape, Andhra Pradesh Minister for Education, IT, and Electronics, Nara Lokesh, laid the foundation stone for LG Electronics’ upcoming manufacturing facility at Sri City near Tirupati. With an investment commitment of $600 million (Rs 5,000 + crore) over four years, this is the largest single-stage electronics investment in South India and the first major FDI project under the newly formed NDA government in the state.
The facility, spread across 247 acres, will produce air conditioners, refrigerators, washing machines, and compressors. Once fully operational, this world-class plant 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 and is projected to supply nearly 70% of India’s air conditioner demand from the state. Production is expected to begin with air conditioners in 2026, with other product lines rolling out in phases until 2029.
The project is expected to create approximately 1,500 direct jobs and 400 indirect jobs. An additional Rs 839 crore will be invested by LG’s key vendor partners—including Ecoria, Kuroda Electric, Heng Sung India, Kyungsung Precision, and Taesung Electronics—bringing the total job creation to over 2,100. The project aims to develop a strong ancillary ecosystem to support white goods manufacturing in the state.
#APWelcomesLG
Proud to lay the foundation for LG Electronics’ new unit at Sri City – a ₹5,001 Cr investment that will generate 2,000 jobs for our youth. Five more ancillary units worth ₹839 Cr will follow. We're transforming Andhra Pradesh into an #ElectronicsHub of the… pic.twitter.com/2vLQ1t7aFx— Lokesh Nara (@naralokesh) May 8, 2025
LG’s move to localise the production of key components such as compressors and heat exchangers is expected to strengthen its supply chain and reduce reliance on imports, further reinforcing Andhra Pradesh’s position as an emerging electronics manufacturing hub.
Speaking at the ceremony, Minister Lokesh noted, “This is more than a factory; it is a strategic investment in the future of Andhra Pradesh.”
