New Delhi: Samsung Telecommunications India Pvt. Ltd, a unit of the Korean conglomerate Samsung, has doubled the production capacity at its manufacturing plant in Noida to one million mobile phone handsets a month, as it attempts to expand its market share twofold.
The company invested $20 million (around Rs87 crore today) for the capacity expansion. The production increase, which kicked in last month, is aimed at meeting demand both in India and export markets.
“The full-year capacity this year (2008) is nine million units, while in 2009 it will be 12 million units,” Samsung Telecommunications’ country head Sunil Dutt said.
Samsung last year set up the Noida unit to support its business in India, one of the world’s fastest-growing mobile phone markets. The plant already boasts the highest productivity among all Samsung mobile phone units in the world, according to the company, which also has three manufacturing units in China, be sides plants in Korea and Brazil. Besides reinforcing production, it is strengthening its product portfolio and distribution channels to achieve the target of doubling its market share in the next 8-10 months to 15%.
The company has about 40 mobile handset models in the market, priced between Rs1,700 and Rs27,500.
The company is expanding its distribution channels and pushing into semi-urban and rural markets through a tie-up such as the one with Indian Farmers Fertiliser Cooperative Ltd.
“The company also has tie-ups with organized retail chains and may also set up some flagship brand stores to enhance consumer experience,” Dutt said.
According to advisory firm International Data Corp. (IDC), the mobile phone market in India is growing rapidly, with 7-8 million subscribers getting added every month.
“In 2008, total legal shipment of over 100 million mobile handsets is expected, which is likely to grow by 15% in the next year,” said Naveen Mishra, analyst (communications research group) at IDC India.