South Korean consumer electronics giant leverages local manufacturing hub to drive $600m investment strategy and expand global market reach.
LG Electronics India expects its export business to account for a double-digit share of total revenue in the near term, supported by strong demand for premium appliances and expanded domestic manufacturing capabilities.
The company’s export growth reached double digits in the first quarter of FY27, with overseas sales currently contributing around 6 to 7 per cent of total revenue. Speaking at the launch of the company’s new AX-series semi-automatic washing machines, Sanjay Chitkara, Co-Chief Sales and Marketing Officer, stated that the commencement of operations at its new Sri City manufacturing site will drive export contributions into double-digit territory. The firm currently exports to over 50 countries across Southeast Asia, the Middle East, Africa, and developed markets.
To support this expansion, LG India is investing approximately 5,000 crore rupees ($600 million) in its third manufacturing facility in Sri City, Andhra Pradesh. Scheduled to become operational by December 2026, the plant will initially manufacture air conditioners before scaling up to produce AC compressors, washing machines, and refrigerators. The new site will complement existing facilities in Greater Noida and Pune, which possess a combined annual capacity of 14.5 million units across 20 production lines.
The company produces roughly 2 million to 2.2 million semi-automatic washing machines annually and holds strong domestic market positions, including a 31.5 per cent offline value market share in washing machines, 28.8 per cent in refrigerators, and 26.1 per cent in televisions. Its Home Appliance and Air Solution division generated 18,160.5 crore rupees ($2.18 billion) in operational revenue during FY26.
LG India currently manufactures 95 per cent of its products locally, with domestic raw material and component sourcing reaching 55 per cent and increasing by 2 to 3 percentage points annually. Recent local production additions include OLED televisions and large-capacity double-door refrigerators, reinforcing the firm’s strategy to use its Indian supply chain as a primary global sourcing hub.
