What started off as a television manufacturing unit in 1997 has now come a long way. So much so that it has put Noida on the world map. With Narendra Modi’s foreign policy slowly bearing results, the South Korean giant Samsung has reached deep in in its pockets to fund the expansion of the plant. An estimated of Rs 4,915 crore has been invested in order to double the capacity of the Samsung plant from 67 million mobile units to a whopping 120 million mobile units. This expansion was approved by the Yogi- led UP government under the mega policy. The expansion is not just in terms of mobile phones being manufactured but also other products such as refrigerators and flat panel televisions.
— ANI (@ANI) July 9, 2018
As of 2017, India had an estimated of 299 million smartphone users which is expected to go as high as 340 million users by the end of this year and 442 million users by the end of 2022.
Leaving behind China and US in terms of mobile manufacturing capability, Samsung considers India as one of its main markets. Currently the company manufactures around 10% of its total mobile capacity in India and aims to take the number to 50%. “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 advance manufacturing in India still lags behind. With the new facility, Samsung is going to have an edge over its rivals,” Singh noted.
The company premises are spread over an area of 35 –acres in sector-81, Noida. Indian Prime Minister Narendra Modi and the South Korean President Moon Jae-in will be flying in to inaugurate the extended facility. Moon Jae-in will be arriving along with his wife Kim Jung-sook, cabinet members and industry captains. This is the first ever state visit by the Korean President. This new plant is expected to generate an addition of around 5,000 jobs in Noida bumping the entire Samsung work force to around 70,000 employees within the country.
As of April 2018, Samsung ranked 2nd in the smartphone market of India following its Chinese rival Xiaomi. Xiaomi has an estimated market share of 31.1% followed by Samsung which acquires 26.6% of the total market share in the smartphone market. This plant will greatly improve Samsung’s chances of regaining its top spot which has been taken over by Xiaomi in the recent times. The smart phone market in India grew by 8% in the first quarter of 2018. The Koreans are all set to regain the top spot given the recent expansion of their production capability in India. With 57% of the total smartphone market captured by the Chinese industry, it would be interesting to see the changes that will occur after the major Korean investment.
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