Boosting local manufacturing: LG to manufacture air conditioner components in India

South Korean electronics giant LG has announced a massive INR 300 crore investment to manufacture air conditioner components in India. This move is expected to generate employment and boost the Indian government's ambitious Make in India initiative.

The company has said that the new manufacturing unit will be located in Noida, Uttar Pradesh, and is expected to create 500 direct jobs and 1,000 indirect employment opportunities. The new unit will produce printed circuit boards, coils, and other key components for air conditioners. This will help LG to reduce its dependence on imports and enhance its local manufacturing capabilities.

The Indian market for air conditioners is one of the fastest-growing in the world, with sales expected to reach around 10 million units in the current financial year. The COVID-19 pandemic has further accelerated the demand for air conditioners, as people spend more time indoors. The Indian government has also launched several schemes to encourage the adoption of energy-efficient air conditioners. All these factors make India an attractive market for companies like LG to invest in.

The new manufacturing unit is expected to start production by the first quarter of 2022. LG has also announced plans to expand its existing manufacturing facilities in Pune and Greater Noida to increase its production capacity for air conditioners. The company aims to double its air conditioner production in India by 2022.

LG has been operating in India for more than two decades and has established itself as a leading player in the consumer electronics market. The company has a strong presence in various product categories such as televisions, refrigerators, washing machines, and air conditioners. With the latest investment, LG aims to further strengthen its position in the Indian market.

The Indian government has been actively promoting the Make in India initiative to encourage domestic manufacturing and reduce the country's dependence on imports. The initiative aims to attract foreign investment and boost local manufacturing capabilities. Several global companies, including Samsung, Xiaomi, and Apple, have already invested in manufacturing facilities in India.

The Indian government has also launched several schemes such as the Production Linked Incentive (PLI) scheme to encourage companies to invest in local manufacturing. The PLI scheme provides financial incentives to companies that manufacture products in India, thereby boosting domestic production.

LG's latest investment is expected to generate significant employment opportunities and boost the local economy. The company's decision to manufacture air conditioner components in India will help reduce the cost of production and enhance its competitiveness in the Indian market. This will also help LG to meet the growing demand for air conditioners in India and provide high-quality products to its customers.

In conclusion, LG's INR 300 crore investment to manufacture air conditioner components in India is a significant step towards enhancing the country's manufacturing capabilities. The move is expected to generate employment opportunities, reduce dependence on imports, and boost the Indian economy. With the Indian market for air conditioners expected to grow rapidly in the coming years, LG's decision to invest in local manufacturing will help the company to strengthen its position in the market and provide high-quality products to its customers.