LG Electronics cements India foothold as third factory begins mass production next month

LG Electronics' newly built third factory in India is set to begin mass production of compressors next month, marking the start of full-scale operation at the facility.

The development comes as LG Electronics India marks the first anniversary of its listing on Indian stock exchanges this month, with the company accelerating its local production capacity expansion to strengthen its supply chain and boost export volumes.

According to the National Stock Exchange of India in Mumbai, LG Electronics India's share price closed at 1,741 rupees ($18) on Wednesday — about 3 percent above the 1,689.90 rupees it fetched on its listing date of Oct. 14, 2025.

Indian business outlet Business Standard highlighted LG Electronics India on Thursday as a company worth watching, noting that foreign investment was flowing into the home appliance sector even as foreign capital outflows from Indian markets hit a record high.

The funds raised through the India unit's listing have contributed to an improved financial position. LG Electronics' consolidated debt-to-equity ratio fell 9.4 percentage points, from 140.3 percent at the end of last year to 130.9 percent at the end of June. Cash and cash equivalents also surpassed 10 trillion won ($7.42 billion) for the first time.

LG Electronics is looking to raise its profile in India not only through financial results but also through expanded local production capacity. The company, which already operates factories in Noida and Pune, broke ground on a third plant in Sri City, Andhra Pradesh, in May last year.

The new factory, built with an investment of $600 million, is on track to begin compressor mass production as early as next month — roughly 18 months after ground was broken. Air conditioner production is scheduled to follow early next year, with washing machines, refrigerators and other products to be added in sequence.

Once the new factory reaches full operation, LG Electronics' annual production capacity in India is expected to reach approximately 17 million units. The company is targeting both the domestic Indian market and expanded overseas exports.

LG Electronics has been investing heavily in the high-growth "Global South" region, with India serving as a particularly strategic hub. The company aims to develop India into a base for global production and exports, not merely a sales market.

Products made at the India unit are currently exported to more than 50 countries worldwide. With overseas sales of premium products such as large-capacity refrigerators also on the rise, India's role within LG Electronics' overall global supply chain is expected to grow further.

The local parts procurement rate has exceeded 55 percent, reflecting progress in the company's supply chain localization strategy. LG Electronics India has been expanding its local supplier network to sharpen cost competitiveness while building resilience against external disruptions, and plans to continue raising its local sourcing ratio going forward.