IPO-bound LG Electronics India is coming up with a new manufacturing facility in Sri City, Andhra Pradesh with an investment of Rs 5,000 crore. On Thursday, Andhra Pradesh Minister for IT, Nara Lokesh, laid the foundation stone for the facility.
The production at the facility will begin with air conditioners in 2026, followed by a phased rollout of washing machines, refrigerators, and compressor lines through 2029.
Once fully operational, the facility 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.
This is the first such large facility under the state government’s manufacturing policy.
The government of Andhra Pradesh has provided 247 acres of land at Sri City to the company for the new plant.
As incentives under the manufacturing policy, the state has waived off the stamp duty and registration fee.
Moreover, it has offered a full subsidy for water consumption for 20 years, SGST refund on construction work, 100% exemption from electricity duty for 20 years, 50% subsidy for electricity tariff for 20 years, and Rs 6,000 per month per worker for skilling subsidy for five years.
The plant is expected to generate around 1,500 direct and around 10,000 indirect jobs.
Four of LG’s key vendor partners are also coming to India and will invest another Rs 839 crore in Sri City.
LG Electronics India has also been planning to list on the stock exchanges here and has filed the DRHP with market regulator SEBI.
The listing was supposed to take place on May 8 earlier. However, it has been postponed due to market volatility.