LG Plant To Come Up at Sri City With ₹5,001 crore Investment

TIRUPATI: LG Electronics, the South Korean electronics major, is set to establish a manufacturing facility at Sri City in Tirupati district, marking a significant investment in Andhra Pradesh’s industrial sector. With a proposed investment of ₹5,001 crore, the plant is expected to generate direct employment for 1,500 individuals and indirect employment for an additional 5,000 to 6,000 people.

Under its Industrial Policy 4.0, the Andhra Pradesh government has allocated 188 acres of land in the first phase for the facility, situated near Kolladam village in the Sri City Phase-2 expansion zone. Officials have indicated that a further 70 acres will be allotted in the second phase to meet LG’s total requirement of approximately 250 acres.

A formal groundbreaking ceremony for the plant is scheduled to take place on May 8. Sources suggest that Chief Minister N. Chandrababu Naidu is likely to attend, either in person or virtually. Final confirmation regarding his participation is expected in the first week of May.

LG, which currently operates manufacturing units in Pune and Noida, is setting up its third plant in India—and the first in South India. The company signed a Memorandum of Understanding (MoU) with the state government in November last year, following an invitation from the present coalition government.

The proposed facility at Sri City will manufacture a wide range of consumer electronics, including refrigerators, air conditioners, washing machines, televisions, and compressors. Commercial production is anticipated to commence within the next two to three years.

To support the project, the state government has announced various incentives, including a 100 per cent water supply subsidy for 20 years and waivers on stamp duty and registration charges. The new plant is expected to benefit both Rayalaseema and the neighbouring Nellore districts, significantly boosting employment and industrial activity in the region.