Samsung the world 2nd largest phone manufacturing company is all set to established the world’s largest mobile factory. And the home of this largest mobile factory is the world’s fastest growing nation, India. The South Korean conglomerate has opened the unit at Sector 81 in Noida, Uttar Pradesh, India. The facility is spread over 35 acres. Prime Minister Narendra Modi and South Korean President Moon Jae-in will do the inaugurate on Monday 7 Jully of this Samsung’s expanded factory.
In India there are 299 million smartphone users in 2017, the number is likely to reach 340 million by the end of this year. By 2022, India’s smartphone users are expected to cross the insane number – 442 million. Samsung is planing to grab a biger share in this increase.
With this new factory Samsung is expected to get a boost in manufacturing, it is expected that Samsung will produce nearly 120 million mobile phones. Company is currently making 67 million smartphones in India. According to Tarun Pathak, Associate Director at Counterpoint Research, the new facility gives Samsung an advantage by reducing the time to market.
According to sources, Samsung has invested whopping Rs 4,915 crore for expanding the unit in June last year. With new Noida Factory Samsung is not only looking to capture the future India market but they are also targeting the other major Asian, European, and African countries. In India Samsung has a 27 per cent growth in mobile business revenue for the financial year 2016-17 — accounting for a whopping Rs 34,300 crore of its reported Rs 50,000 crore sales.
Samsung History With India
It’s not the first time that Samsung look at India as a big opportunity. Company has two manufacturing plants one Sriperumbudur, Tamil Nadu and another one in Noida, Uttar Pradesh. In Noida it has five R&D centres, and one design centre, employing over 70,000 people and expanding its network to over 1.5 lakh retail outlets.
In 1995 Samsung set up there first unit in Noida. This Noida set up was first started producing television sets and later added mobile phones. In 1997 production of TV sets started and the unit began producing refrigerators in 2003. By 2005, Company had become market leader in panel TVs and in 2007. In 2012, Company became the leader in mobile phones in India. The company currently has over 10 per cent of its overall production in India and aims to take it to 50 per cent over the next three years.
The new Noida unit is not only going to benefit the Samsung but to India also, Samsung is expected to create 15,000 jobs through the new manufacturing unit.
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