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LG Electronics India has strengthened its manufacturing play in India and has begun domestic manufacturing of dual inverter air-conditioner compressors. The company has invested about ₹100 crore in setting up the capacity to manufacture one million units annually of AC compressors at its Greater Noida manufacturing facility.
The company will be a beneficiary of the Center’s PLI scheme for AC components.
Kulbhushan Bhardwaj, Business Head- RAC & Senior GM, LG Electronics India, told businessline,” We are investing roughly ₹100 crore to set up the capacity to make these compressors. Since we plan to sell 1.5 million finished air-conditioners annually, this capacity will be sufficient to meet our own demand. Once we stabilise the sub-component ecosystem, we will look at further expanding our compressors manufacturing capacity.”
The consumer durable major said the move, which is closely aligned with the Centre’s Make-In-India vision, will make India its powerful manufacturing hub.
Also read: LG India eyes 25-30 per cent growth in home appliances biz, expands domestic manufacturing footprint
“AC is a seasonal product, which has a dynamic demand. Right now, it takes almost two and a half months to get imported compressors after placing orders. So this strategic move will immensely benefit in reducing time to market and get more flexibility in operations,” he added.
The company believes this will further strengthen the market leadership of LG India in the Air Conditioner industry.
“We are aiming to garner over 30 per cent growth this year compared to the previous year and garner revenues of more than ₹5,000 crore from the AC segment. We have been consistently seeing very good demand for ACs over the past three years, and we expect to see strong demand momentum in this year too with expectations of longer summer season,“ he added.
Earlier this year, LG India announced that it has begun manufacturing its premiums Side-by-Side Refrigerators at its Pune manufacturing facility.
Also read: AC, beverage makers gear up for scorching sales this summer season
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