Published: Mon, July 09, 2018
IT&Software | By Alfonso Woods

Samsung’s biggest factory will be inaugurated in India today

Samsung’s biggest factory will be inaugurated in India today

It also comes three years after the last high-level interaction between the two countries-Prime Minister Narendra Modi visited South Korea in 2015 for talks with then South Korean President Park Geun-hye.

Consumer electronics major, Samsung, has put the name of Noida in Uttar Pradesh on the top of the world map by housing the biggest mobile manufacturing facility in the northern Indian city.

Not China or South Korea - and certainly not the USA - the tag of housing the world's largest mobile factory has straight away put Noida on top of the world manufacturing map when it comes to consumer electronics. Today, Samsung is the market leader across mobile segments. The new facility is spread across an area of over 140,000 square meters. "It makes sense for Samsung to build a bigger manufacturing base here", Jaipal Singh, Senior Market Analyst, IDC, told IANS. The company had first set up the plant in 1997 for manufacturing television sets in India. The company started producing refrigerators at the plant in 2003 while mobile phone production started in 2007. The proposal for a 12-million-tonne-capacity steel plant in Odisha was first floated in 2005 and seen as India's largest foreign direct investment plan. India is a big opportunity across price segments, including 2G feature phones.

India overtook the United States previous year to become the world's second-largest smartphone market after China.

According to IHS Markit, Samsung yielded to China's Xiaomi in terms of market share in India for the October - December period in 2017. The South Korean conglomerate has opened the unit at Sector 81.

"The president and government officials started making gestures to meet the business community since late previous year", an industry official said. Both leaders will also visit a Samsung plant which is located in Noida. In total over 70,000 people are employed by the plant in Noida. Samsung possesses five R&D centres across Indian and retail outlets sum up to 1.5 lakhs in total. There are two in Bengaluru, one in Pune, one in Delhi and one in Noida.

At present, India attributes to 10 percent of overall production capacity of Samsung.

Although officials at Cheong Wa Dae strongly denied any change in the government's stance towards the business community and cautioned against an exaggeration of the Moon - Lee meeting, industry officials say the president's visit to the new Samsung plant in India would help improve the relations.

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