LG Shifts Capital Goods Production to India in Major Supply Chain Move
LG Electronics is relocating production of its newer capital goods businesses to India, a significant step in its global supply chain diversification. The move involves shifting manufacturing from existing facilities in Korea, China, and Vietnam.
Key Developments
- LG Electronics moving capital goods production to India
- LG Corp investing Rs 1,000 crore in Noida R&D centre
- New facility to create 500 jobs in electronics innovation
Major R&D Investment in Noida
In a parallel development, LG Corp is establishing a global R&D centre in Noida with a Rs 1,000 crore investment. The facility will focus on electronics and technology design innovation, generating approximately 500 new jobs.
Strong Market Performance
LG Electronics India demonstrated remarkable investor confidence with its recent market debut. Shares surged over 50% last month, valuing the company at $13.07 billion (Rs 1.15 lakh crore) – surpassing its South Korean parent’s market capitalisation of nearly $10 billion.
The successful IPO reflects strong optimism about the company’s long-term growth potential and localisation strategy. Leading brokerage firms including Prabhudas Lilladher and Motilal Oswal have issued “Buy” ratings, citing LG’s robust distribution network, premium positioning, and focus on high-margin businesses.
Positioned for Growth
Industry analysts note that LG Electronics India, with its leadership in key product segments and continued investments in manufacturing and research, is well-positioned to capitalize on India’s rapidly growing consumer electronics market. The sector is projected to grow at 14% CAGR between 2024-2029.
