Samsung’s biggest factory will be inaugurated in India today

Joanna Estrada
July 9, 2018

Samsung is set to inaugurate its biggest mobile factory in the world today.

Samsung now manufactures over 60 million smartphones annually in India and with the new plant, it is expected to manufacture almost 120 million mobile phones. Prime Minister Narendra Modi and South Korean President Moon Jae-in who is on a visit to India will inaugurate the new 35-acre Samsung Electronics facility on Monday, news agency IANS reported on Sunday.

Since taking power in 2014, PM Modi has pushed his "Make in India" initiative, which encourages companies to set up plants in the country, as the nation attempts to bolster domestic manufacturing.

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 current mobile phone manufacturing unit was added in 2005. To be clear, Samsung has had manufacturing in India for over two decades.

A year ago in June, Samsung has announced a massive Rs 4,915 crore investment to expand the Noida plant. Keep in mind that the 120 million means feature phones as well.

India's smartphone market grew 14% with total shipments of 124 million units in 2017, the fastest pace of growth among the top 20 markets, according to International Data Corp. "It makes sense for Samsung to build a bigger manufacturing base here", Jaipal Singh, Senior Market Analyst, IDC, told IANS. In smartphones, Samsung had a 24.7 per cent share over all of 2017, though it has lost in individual quarters to Chinese rival Xiaomi, which has grown in India. South Korean President, Moon Jae-in have also arrived in India to accompany PM Modi. The Delhi-Noida-Direct (DND) flyover will be blocked from 4 pm to 5.30 pm on account of the same.

Samsung overall has five R&D centres in India.

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. There are two in Bengaluru, one in Pune, one in Delhi and one in Noida. Samsung has firstl opened its first electronics manufacturing facilities in the early 1990s, the plant started by manufacturing TVs in 1997.

Moon, who arrived in New Delhi on Sunday on a four-day visit to India, is expected to meet Lee Jae-yong, the son and heir of Samsung's current chairman Lee Kun-hee, for the first time since he took power in May past year.

Other reports by Click Lancashire

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