LG to build third India factory in Sri City as country becomes top global RAC market

LG Electronics is anchoring a Made-in-India RAC strategy with a new Sri City plant to serve southern India and exports, calling India its largest residential AC market and a top-three HVAC market worldwide. AC penetration has climbed to 12% from 7% a year ago, even as component costs forced three price hikes.

— Source publishedMon, 15 Jun, 2026, 18:36 IST·First seen Mon, 15 Jun, 2026, 18:49 IST·Source The Hindu BusinessLine

What happened

LG Electronics calls India its top residential AC market and a top-three HVAC market globally, building a third factory in Sri City to support southern India,

Key facts

  • 12% AC penetration
  • 7% a year ago
  • 3 price hikes
  • top 3 HVAC market

Why this matters

LG's third-factory commitment validates India as an export hub for HVAC—scout bolt-on targets in compressor, copper tubing, and smart-controls suppliers before valuations reprice on the capex wave.

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