LG Electronics India has invested Rs 200 crore in its Ranjangaon, Pune-based plant to establish a new line for producing the premium range of side-by-side refrigerators.
The new plant, which will be equipped with latest technology and machinery and would cost over Rs 200 crore, is expected to produce 2 lakh side-by-side refrigerators each year, according to a statement from LG Electronics India.
Hong Ju Jeon, MD of LG Electronics India said that this growth is an important step in making India self-sufficient. LG Electronics is sure that India will become a powerful manufacturing hub.
“We will also export from this factory,” he said.
LG also produces double-door and single-door refrigerators, TVs, washing machines, air conditioners, and monitors at its Pune complex, which spans 52.8 acres.
With an annual production capacity of 200k side-by-side refrigerator units, LG Electronics stated that this manufacturing expansion will be critical in meeting rising customer demand and expanding the company’s portfolio in the Indian market.
LG Electronics Global Refrigerator President Hyun Uk Lee, LG Electronics India MD Hong Ju Jeon, and others were on hand to celebrate the opening of the new factory.
Localisation, according to Jeon, has been a crucial distinction since the firm has consistently produced goods based on Indian insights.
Last year, the business began making windows inverter AC in India at its Noida manufacturing site; this year, it will begin manufacturing side-by-side refrigerators in India at its Pune manufacturing facility; and each year, the company expands its local production activities, he added.
LG Electronics India is a fully owned subsidiary of LG Electronics, headquartered in South Korea. The firm, which was founded in India in January 1997 and has been in operation for almost 25 years, has two manufacturing facilities in Greater Noida and Pune.
LG Electronics India’s overall revenue for the fiscal year ending 31 March 2022 was Rs 17,171.3 crore.
LG Electronics India is a market leader in the refrigerator category.
According to a Research And Markets analysis, the Indian refrigerator market was valued at USD 3.07 billion in 2022 and is expected to reach USD 5.88 billion by 2028, with a CAGR of 11.62 per cent.