Focusing on increasing the indigenisation of commercial ACs in India, LG launched a service and manufacturing facility to leverage the country’s manufacturing and exports.
LG Electronics Inc. has established a separate entity in India dedicated to the service and maintenance of commercial air-conditioning machines. James Lee, head of LG’s air solution business unit, recently announced this as a ‘big push’ for the domestic industrial AC sector.
According to Lee’s statement, LG has begun manufacturing compressors for these air conditioners in India, reaching approximately 50% localisation. The company aims to gradually increase this proportion with support from Indian government initiatives, although some components will continue to be imported from South Korea.
However, no financial details of the investment behind the service facility was disclosed.
The senior executive also noted that LG is promoting the potential to export Indian-made commercial air conditioners to the U.S. or Africa through this initiative.
The new service company in India is a component of LG’s global strategy, mirroring setups in approximately ten other countries. This entity will generate income through service and maintenance activities.
Additionally, LG plans to excel in electrification, servitisation, and digitalisation by leveraging advanced inverter and heat pump technologies to introduce innovative products for the commercial sector. In the residential air conditioning market, LG faces competition from brands such as Voltas, Daikin, and Lloyd.
India’s commercial AC market, worth $530 million in 2022, is expected to grow to $1.16 billion by 2028, driven by real estate, foreign investment, and government spending.
With competition from Blue Star, Voltas, and various international brands, LG is boosting its efforts with six HVAC training academies. This supports its strategy to transition from consumer electronics to intelligent life solutions by 2030.
