Minister Lokesh lays foundation stone for $600 Million facility

Metro India News | AMARAVATI

With a capital outlay of Rs.5,001 crore (US$600 million), LG Electronics India Limited (LGEIL) is setting up a state-of-the-art facility over 247 acres allotted by the state government in Sri City near Tirupati.  “This is more than a manufacturing unit—this is the foundation of Andhra Pradesh’s future,” IT Minister Nara Lokesh declared at the ceremony.

This massive facility, spanning a site area of 1 million square meters and a built-up area of 220,000 square meters, will serve as a high-tech production hub for smart, energy-efficient home appliances. Production will begin in 2026, starting with air conditioners, and expand in phases to include refrigerators, washing machines, and compressors through 2029.

This is the first major foreign direct investment (FDI) project under the newly formed NDA government, and the single largest one-stage electronics investment in South India. “Every job created, every product assembled here, is a step closer to transforming Andhra Pradesh from a ‘Made in Andhra’ state to a ‘Made for the World’ force.”

When fully operational, the plant is projected to have an annual output of 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million compressors. Beyond production numbers, the facility is expected to generate 1,500 direct jobs, with an additional 690 created through investments by LG’s vendor partners, who are contributing another Rs.839 crore to the ecosystem.

LG Electronics India Managing Director Hong Ju Jeon and other senior officials, highlighted the significance of the project. “This is not just about manufacturing appliances; it’s about building a future filled with opportunities. It’s about empowering our youth, creating world-class jobs, and driving inclusive economic growth.”

The presence of major component manufacturers like Ecoria, Kuroda Electric, Heng Sung India, Kyungsung Precision, and Taesung Electronics signals the emergence of Andhra Pradesh as a complete electronics manufacturing hub. The facility will help reduce import dependency by localizing key components such as compressors and heat exchangers, further strengthening India’s industrial self-reliance.

“When global leaders like LG partner with us, it reaffirms Andhra Pradesh’s position as a premier destination for high-value investments,” Lokesh said. “From land acquisition to construction and production, we are ensuring seamless support. Andhra Pradesh is open for business—and we are ready for the future.”

Calling the new facility a “dream workplace” for engineers, technicians, and entrepreneurs alike, Lokesh concluded with a vision of transformation. “We are not merely building factories; we are building the backbone of a new Andhra Pradesh. One that stands tall on the global stage, powered by innovation, skill, and vision.”