LG Expands India Operations with Rs 1,000 Crore R&D Investment in Noida
- LG to shift capital goods production to India
- Rs 1,000 crore Noida R&D center to create 500 jobs
- Strong market debut boosts investor confidence
LG Electronics is expanding its manufacturing footprint in India by shifting production of select capital goods from Korea, China, and Vietnam. The move aims to enhance local production capacity and align with global supply chain diversification strategies. These capital goods are essential for building factories that produce high-tech electronics and display components.
In a parallel development, LG Corp, the holding company of LG Group, is investing Rs 1,000 crore to set up a global research and development center in Noida. The new facility will focus on advanced technology and design innovation and is expected to directly create around 500 new jobs.
This expansion follows LG Electronics India’s impressive stock market debut last month, where its shares surged over 50%, valuing the company at approximately $13.07 billion, higher than its South Korean parent’s current market value. The IPO success reflects strong investor confidence in LG’s strategy of local manufacturing and market-led growth.
Also Read: ALPA India Presses DGCA for Full Implementation of Pilot Duty Rules
Brokerage firms, including Motilal Oswal and Prabhudas Lilladher, have given the stock a 'Buy' rating, highlighting LG's premium brand positioning, strong distribution network, and focus on high-margin categories like home appliances, air conditioning, and consumer electronics.
With India’s consumer electronics market projected to grow at 14% CAGR between 2024 and 2029, LG’s plans to strengthen both manufacturing and R&D operations are expected to further solidify its market leadership.
