Samsung plans Rs 4915 crore investment to expand manufacturing

Yolanda Curtis
June 9, 2017

Samsung Electronics plans to double the production capacity for mobile phones and fridges at its main factory in India, expanding in a country where USA rival Apple Inc. has started assembling phones.

"Now, the investment stands at Rs 1.53 lakh crore with 40 mobile manufacturers and 33 mobile component manufacturers investing in the country in the last three years", Prasad told reporters.

"We like Samsung because it does a very high level of value addition in India". Samsung prides itself in being a key pillar of the Government's "Make in India" and "Digital India" initiatives. Talking about the smartphone manufacturers who are onboard this initiative, we already have Xiaomi, Samsung, Apple, etc. Xiaomi is already manufacturing phones in India and so is Samsung.

India is the world's second biggest smartphone market and its fast becoming a battleground for handset makers vying for a bigger share as sales in Asian powerhouse China start to lag.

However, China-based vendors captured 51.4% share of the smartphone shipments in India with 16.9% sequential growth and impressive 142.6% growth over the same period past year.

The 35 acre sites inauguration opened in traditional fashion: with the Indian government ministers and officials along with Samsung Electronics President and CEO of Southwest Asia, HC Hong and CEO of Samsung Electronics Co.

Talking to journalists on the sidelines, Mr. Prasad said the expansion of the plant by Samsung will create direct employment for 5,000 people and indirect employment for 15,000 people.

Yogi Adityanath's government was praised by NITI Aayog CEO Amitabh Kant for making an effort to create jobs. The investment is also believed to be a counter against what the company sees as a threat to its leadership position in the country because of the phenomenal rise of several Chinese vendors over the past couple of years.

"The investment proposal was recently approved by the UP government under its Mega Policy", Samsung said in a press statement at the ceremony of its plant's expansion on Wednesday. Samsung now has 10 percent of its overall production in India and aims to take it to 50 percent over the next three years.

Samsung, a South Korean multinational conglomerate headquartered in Samsung Town, Seoul, has their hands in many different products from phones, televisions, games, and household appliances.

Apple has begun assembling iPhone SE models with Wistron Corporation, its Taiwanese manufacturing partner.

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