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Korean multinational LG Electronics is planning to shift the production of some of its newer capital goods businesses to India, it aimed at expanding its manufacturing base and strengthening local production capabilities. These capital goods are used for setting up factories that produce electronic products, displays, and high-tech components, IANS reported citing a report.

The LG Electronics stock closed at Rs 1,633.65, down by 0.89 per cent from the previous close on Tuesday's trading session. After this development, the shares of LG Electronics India are likely to be in focus on Thursday's trading session.

The relocation is expected to happen from LG’s existing facilities in Korea, China, and Vietnam, a significant step in the company’s “Make in India” commitment and broader strategy for global supply chain diversification.

LG has become more focused on India as a strategic market and production center. Simultaneously, LG Corp, the parent company of LG Group, has revealed an investment of Rs 1,000 crore for the purpose of setting up a new global research and development (R&D) center in the city of Noida.

Electronics and technology design will be the main areas of innovation the new R&D center will be working on, and it will also be providing about 500 jobs, which will, in turn, promote India’s role in LG’s worldwide innovation network.

Industry experts view these developments as part of a long-term commitment by the South Korean group to strengthen its manufacturing ecosystem and leverage India’s skilled workforce and growing consumer base.

The expansion comes at a time when LG Electronics India has been witnessing strong investor confidence. On its market debut last month, the company’s shares increased over 50 per cent, valuing it at $13.07 billion (Rs 1.15 lakh crore) — surpassing its South Korean parent’s market capitalisation of nearly $10 billion (Rs 8,800 crore).

The successful IPO reflected optimism surrounding LG’s localisation efforts and long-term growth potential in India.

Leading brokerage firms such as Prabhudas Lilladher and Motilal Oswal have given a “Buy” rating on the stock, citing the company’s robust distribution network, premium brand positioning, and strategic focus on high-margin businesses.

Industry analysts believe that LG Electronics India, with its leadership in key product segments and ongoing investments in manufacturing and R&D, is well-positioned to capitalise on the fast-growing Indian consumer electronics and appliances market, which is projected to grow at a 14 per cent CAGR over 2024–2029.

With its dual focus on local production expansion and technology innovation, LG appears set to make India a central pillar in its global growth story.