Samsung Electronics on Monday announced the opening of what it said is the world's biggest mobile phone manufacturing facility in Noida, Uttar Pradesh, in terms of number of devices rolled out every month.
Smartphone penetration in India
Samsung is expectedly betting big as India is currently the second biggest mobile market and accounts for 10 per cent of global smartphone sales. From 299 million smartphone users in 2017, the projected increase in the number of users in India is likely to reach 340 million by the end of this year. By 2022, India’s smartphone users are expected to shoot up to a whopping 442 million.
The Noida facility will allow Samsung to manufacture phones at a lower cost due to its scale, while other phone making hubs in China, South Korea and Vietnam are getting expensive, analysts who track the sector said.
The factory, inaugurated jointly by Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in, will also help Samsung compete with rivals such as China's Xiaomi, which became India's biggest smartphone brand by shipments earlier this year.
Tax on imported phones
Modi government has imposed taxes on import of key smartphone components as part of a plan to make India a hub for electronics manufacturing to boost growth as well create tens of millions of new jobs.
70,000 employess and twice the production
The South Korean tech giant makes 67 million smartphones in India and with the new plant, it is expected to manufacture nearly 120 million. Sources said Samsung had pumped in Rs 4,915 crore for expanding the Noida unit, from where it plans to not only cater to the Indian market but also export phones to Europe, West Asia and Africa. “The new unit has come up on an additional 35 acres adjacent to the current facility. It will double the production capacity of both mobile phones and refrigerators,” a company official said. At the Noida facility, company officials said, Samsung will assemble parts sourced from its other agencies.