LG Electronics India Expands Manufacturing with New Andhra Pradesh Plant

LG Electronics India plans to open a new manufacturing plant in Andhra Pradesh to enhance its production capability. The company is focusing on increasing local sourcing but remains dependent on foreign components. The upcoming IPO will see its South Korean parent selling a 15% stake.

LG Electronics India is set to bolster its manufacturing capacity with plans to establish a new plant in Andhra Pradesh. The move aims to meet the rising consumer demand while reducing inventory and associated costs through increased local sourcing of materials.

Despite efforts to localize, LG Electronics India acknowledges its continued reliance on foreign components and finished products, particularly for its premium segment. Imports are mainly from China, South Korea, and Japan, underscoring the company's strategy to ensure superior product quality and technological progress.

The company, under the support of its parent LG Electronics, is also preparing for an initial public offering. This IPO allows the South Korean entity to divest a 15% stake, raising Rs 15,000 crore. The entire IPO is an offer for sale, with proceeds going to the parent company, rather than reinvestment within India.

(With inputs from agencies.)