Under the production-linked incentive (PLI) program initiated by the Indian government, LG Electronics India has invested nearly Rs 300 crore to manufacture air-conditioner components, which also includes Rs 100 crore dedicated to compressor manufacturing. This landmark move has made LG the first brand to produce its own compressors within the country.
As a result of this investment in the component ecosystem, LG has been able to locally source more than 65% of the components required for producing their air-conditioners in India, compared to only 40-45% a few months ago.
LG inaugurated a compressor plant at their Greater Noida manufacturing facility on Monday, which will produce dual inverter compressors and boast a yearly production capacity of over one million units. Other components, such as condensers and evaporators, are already being produced under the PLI program.
Kulbhushan Bhardwaj, who serves as the business head of air-conditioners at LG India, stated that the compressor plant marks the conclusion of the entire INR 300 crore investment made under the PLI program.
According to Kulbhushan Bhardwaj, LG India used to import compressors from their Thailand facility. However, with the establishment of the compressor plant, LG will manufacture compressors for their Indian operations and may even export to other LG operations and sell compressors to other brands in the future.
LG India's 20-25% revenues come from air-conditioner sales, and the company holds approximately 22% of the market share. In the previous year, LG India sold 1.2 million air-conditioner units, and for the current year, the company aims to sell 1.5 million units.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2024, IIFL Securities Ltd. All Rights Reserved
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
