Samsung to invest Rs 1,970 cr to double manufacturing capacity by 2019 end

NEW DELHI: Samsung India will invest Rs 1,970 crore for doubling capacity at its Noida, Uttar Pradesh manufacturing facility by 2019-end, from where it plans to export mobile phones and white goods.

“In line with our commitment to ‘Make in India’ and living by our promise to ‘Make for India’, we are pleased to receive the Uttar Pradesh Government’s approval to invest in the state and expand our manufacturing base here in India,” said HC Hong, President and CEO of Samsung India.

“A bigger and more robust manufacturing facility will help us address the needs and demands of our growing customer base across the country and the region,” Hong added.? ??

The UP government approved the investment under Super Mega A by the state’s Cabinet Committee in Lucknow Monday. A Memorandum of Understanding was signed between Uttar Pradesh Chief Secretary, Rahul Bhatnagar and Samsung’s Hong.

“Today’s MoU is yet another step in converting Noida into the electronics hub of India. I am happy Samsung is pioneering this transformation yet again,” UP chief minister Akhilesh Yadav said.

Samsung started its Noida plant in 1996 and has since been making white goods and mobile phones from the 1.3 lakh square metre facility. A large ecosystem of suppliers in the National Capital Region has also come up since the South Korean company began operations in the area.

While in India, the company has over 40,000 employees, the Noida plant employs around 4,000 people.

Sources said that Samsung will get an additional 1.3 lakh sq m area for expansion which will have to be completed by 2019-end. Manufacturing capacity of mobile phones and refrigerators from the plant will be doubled – mobile phones in particular will rise to 12 million a month from 6 million a month – in the three-year time frame.

“With the large capacity, we will be able to do exports, but in a phased manner,” a senior executive said, without outlining a time frame for beginning exports from India.

The expansion will entail additional direct jobs for 2,200 people and a much higher number of indirect jobs as ecosystem suppliers will grow their base to match Samsung’s scale of demand.

The Rs 1,970-crore expansion approval comes within week of Samsung permanently shutting production and sales of the Galaxy Note 7, globally. In India, the company did not begin sales of Note 7 but analysts expect local smartphone revenues to be hit, but the company has vehemently refuted the claims.

Source :