South Asian Business news and information

Samsung Electronics has recently inaugurated its second manufacturing plant in India. The plant is located in Sriperumpudur near Chennai, Tamil Nadu. Samsung India has already a manufacturing facility at Noida in Uttar Pradesh. Samsung will invest $100 million in four years period in this plant including the initial investment of $30 million this year.

The plant will initially manufacture color televisions at this new plant. Moreover, Samsung India is planning to manufacture fully automatic washing machines from early next year from this manufacturing facility. The plant will manufacture 1.5 million flat TVs and 0.3 million LCD TV’s in different screen sizes ranging from 19-inch to 32-inch. The products of this plant will go into local and other South Asian countries including Sri Lanka, Nepal and Bangladesh.

H B Lee, president & CEO, Samsung South West Asia Regional headquarters, is hopeful regarding this plant and its future. Mr. Lee thinks that this new plant will help Samsung to cope up with increasing demand for Samsung products in the Southern part of the country.

 
Business-standard reported:

Says H B Lee, president & CEO, Samsung South West Asia Regional headquarters: " The Sriperumbudur facility will help us respond better and faster to the growing demand for our products in the Southern part of the country."

"We are leveraging the best of Indian talent available here in Tamil Nadu as well as our global manufacturing expertise to produce world class products from this facility", Lee said.

"We plan to work with and develop our vendor base in Chennai, so that we can continuously enhance our competitiveness. In the future, I am looking at the Sriperumbudur facility becoming a global manufacturing hub for Samsung operations." Lee added.

Initially 350 people have been employed in the plant and there is possibility to increase the number up to 2500 in coming days. Timal Nadu government has allotted 80 acres for this plant. Nine local vendors have already been involved in the project. Samsung India is planning to involve more local vendors in its second manufacturing plant in India.

 
The Economic Times reported:

The first phase has come up on 20 acres of land over the allotted 80 acres and will manufacture 1.5 million flat TVs per annum and 0.3 million LCD TV's, R Zutshi, Deputy Managing Director, Samsung India Electronics Pvt Ltd said.
The facility will initially employ 300 persons, which will go upto 2,500 persons on full implementation of the project, he added.

Samsung India manufactures LCD TVs, colour monitors, refrigerators, washing machines and GSM handsets from local plants. Besides two manufacturing plants, Samsung has also set up two R&D centers in India- one is hardware and software R&D centers located in Nodia for consumer electronics products and another one is Samsung India Software Operations Unit (SISO) situated in Bangalore for telecom software development. In the last fiscal year, Samsung has experienced a huge consumer growth in India. Almost all of its products have seen double figure growth. During Diwali, Samsung sold products of $1 billion, which is 41 percent up compared to the same period of last year.

 
Monstersand Critics reported:

'We have seen refrigerators and washing machine sales growing in single digit percentages in the last 6-10 years across the industry. However, this year refrigerators have clocked a growth of 14-16 percent and washing machines at 20.5 percent. Even colour televisions, which were growing at 7-8 percent in the last five years, has seen a growth of 12-14 percent this year,' said Zutshi.

Samsung is the no. 1 consumer electronics brand in the world. The company has taken India seriously considering its large market and huge potential. With couple of manufacturing plants and R&D centers, Samsung has already ensured a good base in Indian market. So, with such an infrastructure Samsung now has an edge over other global competitors in India. Now, it is yet to see how the competitors respond to Samsung in India.

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