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Samsung makes Noida manufacturing hub

In order to expand its business both within and outside India, Samsung Electronics has set aside a staggering sum worth Rs. 5,000 crore to make Noida’s, plant as its manufacturing hub as it is doubling its manufacturing capacity of mobile phones by 2020. In view of this, this will become South Korean company’s biggest investment in India, where it’s holding on to a lead against increasing threats from Chinese rivals. The No 1 smartphone maker in the world and India intends to make the South Asian nation a manufacturing and export hub, with shipments to Europe, Middle East, Africa and elsewhere expected to kick off in 2020. This will be the biggest investment Samsung is making in India. The company has taken another site close to the existing one in Noida doubling the area from 130,000 square metres, the official said, adding, Samsung, which already manufactures all of its phones that it sells in India, declined to comment. Local production means better pricing and control over the supply chain, besides quicker time to market -all critical for success in as intensely competitive a market as India. Samsung and Apple are vying with Chinese rivals such as Xiaomi, Oppo, Vivo and Lenovo, besides homebred players such as Micromax, for a greater share of the Indian market. Government officials aware of the development said the investment will be made over the coming years until 2019-20 in the Noida plant. It will also include a doubling of refrigerator production capacity, but mobile phones will be the larger focus with annual capacity to expand to about 12-13 million units a year, up from five million. The investment comes amid the handset industry’s concerns over the continuation of tax sops for local production under the goods and services tax (GST).

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