Samsung 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.
South Korea and Uttar Pradesh have an emotional relationship, about 2000 years back the princess of Ayodhya got married to the prince of Korea, said Yogi Adityanath at inauguration of Samsung mobile factory in Noida.
The new 35 acre Samsung Electronics office at Sector 81 in Noida, Uttar Pradesh, will see Prime Minister Narendra Modi and South Korean President Moon Jae-in landing together at an immediately arranged helipad adjoining the manufacturing plant to officially inaugurate it on Monday.
The two visiting dignitaries entered the temple premises through its beautiful Bharat Upwan, and were welcomed with garlands, a ‘tika’ and ‘kalwa’ (holy thread) on the wrist in front of the Mayur Swagat Dwar by Sadhu Gnanmunidas, Swami of the temple.
One of the first electronics manufacturing facilities set up in the nation in the mid 1990s, the plant began by assembling TVs in 1997. The current mobile phone manufacturing unit was added in 2005.
In June a year ago, the South Korean mammoth reported a Rs 4,915 crore venture to grow the Noida plant and after a year the new office is prepared to twofold its production. The organization is right now making 67 million mobile phones in India and with the new plant being operational, it is required to produce almost 120 million mobile phones.
Not simply mobiles, the development of the present office will twofold Samsung’s production capacity of consumer elctronics like refrigerators and flat panel televisions, further consolidating the company’s leadership in these segments.
As per Tarun Pathak, Associate Director at Counterpoint Research, the new office gives Samsung favorable position 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 said.
Samsung has two assembling plants – in Noida and in Sriperumbudur, Tamil Nadu – five reserach and development in Noida, and one design and creative centres in Noida more than 70,000 individuals and extending its system to more than 1.5 lakh retail outlets.
Set up in 1995, Samsung India established the framework stone of Noida plant one year from now. In 1997, production commenced and the first television was rolled out. In 2003, refrigerator production began.
By 2005, Samsung had progressed toward becoming leading pioneer in panel TVs and in 2007, the current Noida office began manufacturing phones.
In 2012, Samsung turned its focus to become leader in smart mobile phones in the nation and the Noida office revealed the first-ever “Galaxy S3” device. Today, Samsung is the market leader across mobile segments.
The organization right now has more than 10% of its general production in India and means to take it to 50 percent throughout the following 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, said.
“They are presently taking a gander at building an entire technological ecosystem. After smart phones, they can go into building top notch items in different classes like TVs, refrigerators and air conditioners as most advance and innovative production in India still falls behind. With the new office, Samsung will have an edge over its adversaries,” Singh noted.
As per HC Hong, President and CEO, Samsung India, a greater assembling plant will enable them to fulfill the developing interest for Samsung products the nation over.
Samsung India, that registered 27% growth in mobile business revenue for the financial year 2016-17 — accounting for a whopping Rs 34,300 crore of its reported Rs 50,000 crore sales – won’t be able to hide the smile when the new facility kicks off production from July 9.
The Korean chaebol said that the investment would position the Noida plant as a major production hub and create about 5,000 new jobs.
The company’s investment proposal was recently approved by the UP Government under its Mega Policy.