LG to Set up Rs 5,000 Crore Manufacturing Plant in Sri City by 2026

LG Electronics plans to set up a major manufacturing plant in Sri City, Andhra Pradesh, with an investment of Rs 5,000 crore. The ceremony for laying the foundation stone of this significant project is planned for Thursday.

The facility will cover 247 acres and concentrate on producing refrigerators, air conditioning units, and washing machines, as well as parts like compressors, motor compressors, and heat exchangers. Manufacturing activities are anticipated to begin by December 2026.

This investment is the largest of its type in South India and is anticipated to create 1,495 direct jobs and about 10,000 indirect job opportunities.

The initiative represents the initial extensive production facility in accordance with the state government's manufacturing strategy.

Four suppliers of LG Electronics are making their debut in India, announcing a further investment of Rs 839 crore in Sri City. LG is anticipated to finalize its total investment surpassing Rs 5,000 crore in a period of four years.

In line with the manufacturing policy incentives, the Andhra Pradesh government has provided significant advantages such as registration fees and stamp duty, a complete subsidy on water usage for two decades, SGST refunds for construction activities, full exemption from electricity duties for 20 years, 50 percent subsidy on electricity rates, and a monthly skill development subsidy of Rs 6,000 per worker for five years.