TIRUPATI: LG Electronics is set to invest Rs 5,001 crore on a new manufacturing plant in Sri City, a Special Economic Zone (SEZ) in Tirupati district. The groundbreaking ceremony for the plant will be held on May 8.
In an interview with TNIE, Ravindra Sannareddy, Founder and Managing Director of Sri City, said Chief Minister N Chandrababu Naidu and IT and Electronics Minister Nara Lokesh have made concerted efforts to get LG to Andhra Pradesh. LG, which currently operates manufacturing units in Pune and Noida, is setting up its third plant in India, and the first in South India in Sri City.
The proposed facility in Sri City will manufacture a wide range of consumer electronics, including refrigerators, air conditioners, washing machines, televisions, and compressors. Commercial production is expected to commence within the next two to three years, he explained.
To support the project, the State government has announced various incentives, including a 100% water supply subsidy for 20 years, and waiver of stamp duty and registration charges.
The new plant is expected to benefit both Rayalaseema and the neighbouring Nellore districts, significantly boosting employment and industrial activity in the backward region, he said.
Sri City unique features
Sri City, which was launched on August 8, 2008, is a uniquely positioned industrial hub with access to four seaports and two international airports, making logistics seamless. Spanning over 8,000 acres in Andhra Pradesh and Tamil Nadu, it is India’s first and largest green, multi-product integrated business city.
Made in AP products power living in 6 continents
Hosting 235+ global companies from 31 countries, Sri City is a top industrial destination built on the innovative ‘Work-Live-Learn-Play’ concept, blending industry with residential, educational, and recreational spaces. The cumulative investments are close to $4.5 billion.
All these companies have created employment opportunities to more than 65,000 people, with more than half of them being women (52%). The products made at Sri City are, in many ways, powering everyday living with precision and purpose worldwide, he said.
Major brands operating from Sri City SEZ
Colgate-Palmolive operates a facility that produces an astonishing 2 million toothbrushes daily that’s 23 brushes every second. This plant alone accounts for over 40% of India’s toothbrush production. PepsiCo’s facility in Sri City stands as their largest manufacturing operation in India, serving as a hub for mango pulp sourcing that benefits 32,000 farmers.
The consumer goods sector is represented by Kimberly-Clark, whose hygiene products reach 25% of the world’s population daily, and Unicharm, Asia’s largest hygiene products manufacturer.
In climate control, Daikin, the world’s largest air conditioner manufacturer, leads a cluster, including Bluestar, Havells, Amber, and Epack. Together, these companies are projected to produce 50% of India’s air conditioners by 2027, with 80% of the country’s AC exports originating from Sri City.
Isuzu Motors India plant in Sri City, Andhra Pradesh’s first car manufacturing industry, has become a leading exporter of commercial vehicles from India in 2024-25, with 20,312 units exported.
BFG India exemplifies Sri City’s contribution to modern transportation, supplying unique FRP panels, interiors, toilet cabins, and front ends for Vande Bharat Express and Vande Bharat sleeper trains.
The company partners with global leaders like Alstom and Bombardier, providing FRP components for metro projects across major Indian cities - Chennai, Delhi, Cochin - as well as Canada and Australia.
In a remarkable achievement, BFG India built the 25 metre long FRP superstructure for Kochi Water Metro, India’s first integrated water metro system, Ravindra highlighted.
At present, over 235 companies from 31 countries have invested in Sri City, and represent a diverse manufacturing portfolio, which includes automotive, locomotives, electronics, engineering, air conditioning, formulations, FMCG, food processing and warehousing.
Together, these firms have driven Sri City’s cumulative exports to six continents an impressive $6.5 billion since its inception. Their focus on quality not only satisfies domestic demand but also strengthens India’s foreign exchange reserves, he elaborated.
This growth underscores the success of the Make in India initiative, reinforcing India’s position as a leading global manufacturing hub.
Astrotech Steels dispatches over 170 containers monthly to markets in the USA, Canada, Australia, and Europe. The electronics sector thrives with Blue Star Climatic and Daikin, both of which cater to domestic and international markets, targeting exports to regions including West Africa, the Middle East, and South America.
With over 30 Japanese companies, Sri City quickly rose to become the second-largest ‘investment destination’ for Japanese brands in India, the MD highlighted.