Based on inputs by Meeta Kapoor
Samsung will set up the world’s largest mobile factory in the world at Noida. This will put Noida on top of the world manufacturing map with respect to consumer electronics.
The Prime Minister Narendra Modi and South Korean President Moon Jae-in officially inaugurated new 35-acre Samsung Electronics on Monday. This facility is situated at Sector 81 in Noida, Uttar Pradesh.
In June last year, the South Korean giant announced a Rs 4,915 crore investment to expand the Noida plant and, after a year, the new facility is ready to double production. The company is currently making 67 million smartphones in India and with the new plant being functional, it is expected to manufacture nearly 120 million mobile phones.
Not just mobiles, the expansion of the current facility will double Samsung’s production capacity of consumer electronics like refrigerators and flat-panel televisions, further consolidating the company’s leadership in these segments. According to Tarun Pathak, Associate Director at Counterpoint Research, the new facility gives Samsung an advantage by reducing the time to market. “This will help Samsung bring some local features to the devices powered by R&D here. Apart from this, the company can also bring in export opportunity for Samsung to SAARC and other regions,” Pathak told IANS.
The new facility will kicks off production from July 9.
Today, Samsung is the market leader across mobile segments. The company currently has over 10 per cent of its overall production in India and aims to take it to 50 per cent over the next three years. “For Samsung, India is among the top five smartphone markets globally. The US is saturated and Korea and Brazil are not growing significantly. India is a big opportunity across price segments, including 2G feature phones. It makes sense for Samsung to build a bigger manufacturing base here,” Jaipal Singh, Senior Market Analyst, IDC, told IANS. “They are now looking at building a complete ecosystem. After smartphones, they can go into building top-of-the-line products in other categories like TVs, refrigerators as advanced manufacturing in India still lags behind. With the new facility, Samsung is going to have an edge over its rivals,” Singh added.
According to HC Hong, President and CEO, Samsung India, a bigger manufacturing plant will help them cater to the growing demand for Samsung products across the country.