An investment of ₹5,001 crore is being announced by LG Electronics to establish a newly formed manufacturing plant at Sri City in Andhra Pradesh. The plant will also count as LG's third manufacturing unit in India and the first one in South India.
This plant will manufacture consumer electronics such as refrigerators, washing machines, air conditioners, TVs, and compressors. According to Project Lead Sannareddy, commercial production would begin in about two to three years.
The government of Andhra Pradesh is facilitating the project with many incentives, including a 100% water supply subsidy for a duration of 20 years, along with waiver of stamp duty and registration fee. This initiative shall enhance industrial development and create employment opportunities in the Rayalaseema region and adjoining Nellore district.
Situated in an integrated business hub, Sri City provides excellent logistical advantages with the proximity of four seaports and two international airports. The city is organized on a `Work-Live-Learn-Play' format and houses more than 235 MNCs from 31 countries.
The continuing spread of LG Electronics is testimony to its ever-expanding footprint in India due to growing customer demand and policy support. The business-friendly ambience of Sri City has seen investments of close to USD 4.5 billion and major global players such as Colgate-Palmolive and PepsiCo setting shop in the region. The new facility of LG gives the region a still bigger leg in being a coveted investment and manufacturing hub in India.