LG Electronics India Ltd said the expansion of its upcoming ₹5,000-crore manufacturing facility at Sri City in Andhra Pradesh is progressing as planned and will play a key role in supporting its long-term growth strategy.
The Sri City plant will serve as a manufacturing and export hub within LG’s global production network. The planned investments over the next few years will be funded through internal accruals.
Manufacturing focus
The expansion is aimed at improving cost competitiveness and reducing dependence on imports, said LG Electronics India Managing Director Hong Ju Jeon in a letter to shareholders.
The company also plans to increase localisation beyond the current level of around 55% as component sourcing and domestic manufacturing investments gather pace, in line with the Centre’s Production Linked Incentive (PLI) programme.
Growth strategy
Leading consumer electronics manufacturer said it remains confident of retaining its leadership across major product categories through its dual strategy of strengthening both the premium portfolio and the Essential Series.
The company expects premiumisation to remain a key growth driver as consumers continue upgrading to higher-end products across categories.
Exports to drive growth
Exports are expected to become an increasingly important growth lever, supported by expansion into new international markets, the scale-up of the Sri City facility and wider reach of the Essential Series.
The company said progress will be gradual, while India’s low home appliance penetration and strong consumer demand provide significant long-term growth opportunities.
Future priorities
“The fundamentals of our business remain strong, our strategy is clear, and our future opportunities are compelling. With your continued trust and confidence, LG Electronics India is well positioned for scaling the next phase of growth,” he said.
“Our priorities remain clear. We will continue investing in innovation, manufacturing excellence, customer experience, talent development and digital capabilities. We will deepen our localisation efforts, strengthen our supply chain resilience, and enhance our ability to serve consumers across every part of the country,” said LG Electronics India Chairman Daehyun Song.
The first Annual Report
It is the first annual report of LGE India post the successful listing on the Indian bourses. The listing marked a defining moment in our journey of sustained leadership and continued progress, the Chairman said.