Samsung to Invest Rs. 4,915 Crores to Expand Phone, Refrigerator Manufacturing in India
Samsung over the years has enjoyed a pretty solid foothold in the Indian market. The South Korean giant leads in smartphone sales in the country partly thanks to its wide range of smartphones that cover each price segment as well as its production capacity. Speaking of the latter, Samsung India on Wednesday announced that the expansion of its factory in Noida has now commenced.
The South Korean giant announced an investment of Rs. 4,915 crores in India to expand the Noida plant which manufactures smartphones, refrigerators, and TVs. To meet the ever growing demand for Samsung smartphones, the company means to double its production after expanding its factory in Noida by 35 acres as part of the ‘Make in India, Make for India’ initiative. The factory, once fully operational, will be able to produce around 10 million smartphones every month or around 120 million smartphones annually and generate thousands of new job opportunities.
Unveiling the foundation stone, HC Hong, President and CEO of Samsung Southwest Asia, took to the stage and said, “This new investment of Rs. 4,915 crores is a testament to our continuing commitment to ‘Make in India’ and to Uttar Pradesh, which has been our partner right from the day Samsung’s journey in India began. Steadfast support from the state and local authorities in Noida has helped our vision of ‘Make in India’ a reality. Today, on the back of the Digital India movement led by millions of young Indians, we are witnessing a rise in adoption of electronic devices, smart appliances and mobile phones. A bigger manufacturing plant will help us cater to the growing demand for Samsung products across the country.”
Electronics and IT minister, Ravi Shankar Prasad, said at the event that investments towards electronics industry in India grew to Rs. 1,53,000 crores from Rs. 11,000 crores in the last three years and that the government sees $1 trillion coming out of digital economy by 2020 with Samsung a key player in driving the economy.
Expansion plans in Noida first came to fruition after the company signed a memorandum of understanding (MOU) with the Uttar Pradesh government back in October 2016. Samsung had initially planned to invest only about Rs. 2,000 crores, but then decide to increase investment and scale up manufacturing in India.
The expansion comes in the face of growing competition from Chinese companies like Oppo and Vivo, who are slowly capturing the Indian market with their mid-range offerings. While Samsung still maintains the number one spot, its growth is far less when compared to the competition.
Additionally, Samsung India has also launched service vans to provide timely customer support across rural India, expanding its network to over 3,000 service points.