Andhra Pradesh is witnessing a significant shift in its industrial landscape as the LG Electronics ₹5,000-crore mega-facility in Sri City approaches its operational launch.
Announced by IT Minister Nara Lokesh on January 13, 2026 the project has transitioned from an empty 247-acre greenfield site to an advanced construction zone in just seven months—a feat being hailed as a prime example of the state’s “Speed of Doing Business” model.
Facility Roadmap & Production Targets
The Sri City plant is LG’s third manufacturing hub in India (after Greater Noida and Pune) and is poised to become its largest single-stage electronics project in South India.
- Commercial Launch: Slated to begin by the end of 2026, starting with Air Conditioners.
- Phased Expansion (2027–2029): Production will scale to include washing machines, refrigerators, and high-tech compressors.
- Annual Capacity (Full Operations):
- 2 million AC compressors
- 1.5 million Air conditioners
- 850,000 Washing machines
- 800,000 Refrigerators
Economic & Employment Impact
The investment is a major driver for the local economy, moving beyond direct manufacturing to creating a self-sustaining white goods ecosystem.
| Metric | Project Impact |
| Total Investment | ₹5,001 Crore (~$600 Million) |
| Direct Employment | ~1,500 to 2,000 high-skilled jobs |
| Vendor Ecosystem | 5 key partners (e.g., Ecoria, Kuroda) investing an additional ₹839 Crore |
| Total Jobs (Direct + Indirect) | Thousands across the Sri City manufacturing belt |
Strategic Rationale: Localization & Supply Chain
A key highlight of this facility is its focus on backward integration. By manufacturing core components like compressors and heat exchangers in-house, LG aims to:
- Reduce Import Dependency: Significantly lowering the reliance on imported parts from East Asia.
- Optimize Logistics: Direct access to South Indian markets and proximity to major ports for future export potential.
- R&D Integration: The site will likely house advanced testing labs to tailor products for the Indian climate and voltage fluctuations.
“From land handover in May 2025 to remarkable progress today—this is not just the beginning of a manufacturing unit; it’s the laying of a foundation for the future of Andhra Pradesh.” — Nara Lokesh, Minister for IT & Electronics.
