India is Samsung’s goldmine, well not only Samsung, but India is also almost every smartphone makers’ goldmine at the moment. There are companies looking at India like a hungry dog looks at its food. India is going to become a hub of smartphones and that is not a distant future. Apple, Samsung, Xiaomi, OnePlus, and many other companies have their own manufacturing plants in India and Samsung, which once was the king in India is opening up a component manufacturing plant which is going to cost a fortune.
Samsung has invested in India for the umpteenth time and it is still not enough. The component factory has a meaning to it, that means Samsung will have the entire phone manufactured in India and no part will be imported. Currently, the complex parts are being imported in India and that is why the cost of the phones is a bit high, once the entire phone is manufactured in India, then the price will drop enormously. Apple is seeing a similar trend and it is only assembling the iPhone XR’s in India.
That being said, INR 2500 Cr is the amount of money invested in India. The electronics giant from South Korea is going to require a lot of lands. The factory is going to be set up in Uttar Pradesh and Samsung Display has already signed a Memorandum of Understanding with the UP government as well. The company is going to invest another INR 1000 Cr after this.
Noida already has a plant construction going on there where Samsung has invested almost INR 5000 Cr. It is the world’s largest manufacturing plant and is going to create 5000 jobs. Samsung has taken the Make in India initiative way to seriously as it has managed to create more than 7000 jobs all around India. These investments are better suited to a company like Samsung because they understand the market like no other company. The South Korean company has been in India longer than any of its competitors.
Apart from this, Samsung Venture Investment Corp has placed its office in India. The company is doing so in order to fund the startups. India being a startup-friendly country, there is a lot of opportunities for the company to invest. That being said, the components factory is going to not only provide components to Samsung India but also to the other companies which buy products from Samsung for their phones. That means, the companies which have plants in India and buy components from Samsung will also have an effect on their prices.
One of the executives had his say on the same. He said that the components business will have to surpass the finished product. This is because there are more Samsung entities are keen on making it big in the sub-continent country.
He said, “Samsung’s investments on component manufacturing in India will eventually overtake that of the finished product since these are capital intensive projects and more Samsung component entities are keen on making in India.”