LG Invests Rs 300 Crore For Manufacturing AC Components In India

Under the production-linked incentive (PLI) programme 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. LG is now the first company to manufacture its own compressors domestically thanks to this historic decision. 
As a result of this investment in the component ecosystem, LG has been able to locally obtain more than 65% of the components required for producing its 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 works as the business head of air-conditioners at LG India, remarked that the compressor facility represents the culmination of the total INR 300 crore investment made under the PLI program. 
According to Kulbhushan Bhardwaj, LG India used to import compressors from their Thailand facility.

But now that the compressor plant has been built, LG will produce compressors for their operations in India and perhaps even export to other LG operations and sell compressors to other brands in the future. 
Sales of air conditioners account for 20–25% of LG India's total sales, and the business has a market share of roughly 22%. 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.

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