LG India Boosts Exports: ₹5000 Cr Sri City Hub for Global Growth

LG Electronics India is dramatically scaling up its export ambitions, positioning the nation as a central manufacturing and export hub. This strategic pivot, announced at its first annual general meeting, underscores a clear focus on leveraging India’s production capabilities for a wider global reach.

The company has committed a substantial ₹5,000 crore investment into its Sri City factory, slated to commence export operations by December this year. Sanjay Chitkara, co-chief sales & marketing officer, affirmed that the ‘Make in India’ strategy is a vital growth lever for LG India’s future trajectory.

Key Export & Investment Figures

• Investment: ₹5,000 crore into the Sri City factory.
• Current Exports: Products from India reach over 50 countries.
• Target Expansion: Essential series exports planned for 22 countries by calendar year 2026.

Daehyun Song, chairman of LG Electronics India, highlighted the company’s commitment to innovation and operational excellence. He also emphasized sustainable growth, long-term value creation, and adherence to high standards of corporate governance, transparency, and accountability following its listing.

Managing Director Hong Ju Jeon noted LG’s strong market position across most product categories, crediting innovation, customer experience, and robust channel partnerships as core strengths. India presents significant growth potential, driven by low home appliance penetration rates.

India’s Untapped Appliance Market

• Refrigerators: Only 30% penetration.
• Washing Machines: Stands at 20% penetration.
• Room Air Conditioners: Just 10% penetration.

This untapped market, combined with anticipated demand surges from GST rate reductions on air conditioners and larger TVs, provides a strong tailwind for LG. The strategy aims to capitalize on both domestic consumption and a burgeoning role as an international manufacturing powerhouse, solidifying India’s position in LG’s global supply chain.