LG Electronics plans to invest heavily in India and other countries to improve the quality of its heating, ventilation, and air-conditioning (HVAC) systems. Company executives announced this on Thursday. LG’s HVAC products include air-conditioners, air purifiers, air-handling units, and energy recovery ventilators.
The company currently manufactures HVAC systems in 11 countries, with production in India taking place at its Pune facility. LG also has a plant in Greater Noida, but it does not make HVAC products there.
To boost production and sales in India, LG aims to increase its production capacity and enhance product quality. This will involve investing in research and development, using more local materials for making components, and setting up a new company for product maintenance.
LG’s HVAC solutions are important in India, where climate control is necessary for comfort in varying weather conditions. The company focuses on creating products tailored for Indian consumers to ensure they benefit from the latest HVAC technology.
Currently, about 50% of the raw materials used in India for HVAC production are sourced locally, and this is expected to increase over time. However, some materials still need to be imported from Korea.
James Lee, head of the air solution business unit at LG, mentioned that LG’s increased focus on HVAC in India is due to rapid urbanization, a growing middle class, increased foreign investments in commercial spaces, and a booming real estate market. The Indian government’s support for local production also plays a key role.
A recent survey predicts that the commercial AC market in India will reach $1.16 billion by 2028. LG is also investing in local infrastructure, including research and development, distribution, and service networks, to provide customized solutions that improve comfort and sustainability.
Additionally, LG plans to set up more HVAC training centers in India to enhance worker skills. Currently, there are six centers located in Noida, Pune, Mumbai, Chennai, Kolkata, and Bengaluru. The company is also looking to acquire local firms to strengthen its position in the global HVAC market.
