LG To Open Third Manufacturing Facility In India To Meet Growing Home Appliance Demand

LG Electronics is set to open its third manufacturing facility in India, marking its first plant expansion in the country since the inauguration of its Pune factory in 2006. An LG official, as quoted by The Chosun, confirmed that the company is actively exploring options to enhance its production capacity to cater to the surging demand for home appliances in India. 

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While the location and construction timeline for the new plant have not been finalised so far, the move highlights LG's commitment to strengthening its presence in India’s rapidly growing consumer market. 

LG Factories In Noida And Pune

Having entered the Indian market in 1997, LG Electronics initially set up its first plant in Noida, Uttar Pradesh, followed by the Pune facility in Maharashtra a decade later. 

LG's Noida facility manufactures refrigerators, washing machines, air conditioners, ovens, and water purifiers, while the Pune facility produces similar products along with televisions. 

Expansion Of LG's Pune Unit

Earlier in 2023, LG invested Rs 2 billion (approximately 33 billion won) to expand its Pune factory, adding a production line for side-by-side refrigerators and increasing its annual capacity by 100,000 units.

Despite these efforts, increasing demand for home appliances in India has prompted the company to consider additional production capacity. 

India's Home Appliance Market

According to the Korea International Trade Association (KITA), India’s home appliance penetration rates remain low despite a population of over 1.4 billion. 

Currently, just 38 per cent of Indian households own refrigerators, 17 per cent have washing machines, and only 8 per cent use air conditioners. However, rising income levels, the growing number of nuclear families, and more women joining the workforce are contributing to greater demand for household appliances such as dishwashers. 

The Korea Trade-Investment Promotion Agency (KOTRA) estimates that India’s home appliance market, which was valued at $11 billion in 2019, will more than double to $21 billion by 2025. This rapid market expansion is a significant factor in LG’s decision to expand its manufacturing footprint in India.