Samsung to invest Rs4,915 crore in Noida plant to double production
South Korean company Samsung Electronics Co. Ltd will invest Rs4,915 crore in its Noida plant to double its production capacity for mobile phones and refrigerators, in order to maintain its lead in an already crowded market for both products.
The investment proposal was recently approved by the Uttar Pradesh government, the company said in a statement.
“We added another chapter to the India story…as a leader, it is Samsung’s responsibility to show the way to promote ‘Make in India.’ We want to make India a global production hub. This investment is a testament to the support we have from government,” H.C. Hong, president and chief executive of Samsung Southwest Asia, told reporters.
Samsung entered India in 1995. It has two factories—in Noida, Uttar Pradesh and Sriperumbudur, Tamil Nadu — besides five research and development centres and one design centre in Noida. The company employs over 70,000 people, with a network of over 150,000 retail outlets.
Set up in 1996, the Noida plant manufactures smartphones, refrigerators and flat panel televisions.
Union minister for communications and information technology Ravi Shankar Prasad said: “This Samsung expanded unit itself is going to manufacture 12 crore mobile phones...I am aiming at 50 crore mobile phones in the next 2-3 years…we are aiming at one trillion dollar digital economy in the coming 5-7 years. Digital economy means communication, IT/ITeS, electronic manufacturing, ecommerce, digital payment and cyber security.”
Investments in the electronics manufacturing sector currently stand at Rs1,53,000 crore, up from Rs11,000 crore, when the Narendra Modi government came to power in 2014, Prasad said, adding that India is home to 72 mobile manufacturing units —42 mobile manufacturing and 30 component manufacturing.
Prasad told Mint that new investments at the plant will create 5,000 direct and 15,000 indirect jobs.
“Samsung’s target is to manufacture about 100 million mobile phones by 2020...they produce 10% of their global production from India. 70% of it goes to the domestic market, 30% for the export market. I am sure, with this expansion, Samsung will take its global production from 10% to close to 50% in the next 3 years,” said Amitabh Kant, CEO of NITI Aayog.
Samsung has launched service vans to provide timely and quality customer service to consumers across rural India, expanding its network to over 3,000 service points, the largest by any company in the country.
“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,” Hong said in a media statement.