The move to double the production capacity to 1.2 crore mobile phones a month comes at a time smartphone users in the country are likely to touch the 340 million mark by the end of this year. Studies have described India as the second-largest smartphone market in the world, only behind China.
Experts have said Samsung’s decision to revamp the Noida unit could not have come at a better time. India’s smartphone consumer base, driven by its young demography, has been expanding rapidly over the recent years. 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.
Sources said Samsung had pumped in Rs 4,915 crore for expanding the 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.
“The components will be assembled in Noida facility. There will be some labour-intensive functions, which will generate a number of jobs. Besides, the unit will also give rise to ancillary companies in the city,” a senior official said.
Set up in 1995, the Samsung unit in Noida had started with producing television sets and later added mobile phones to its repertoire. According to agencies, production of TV sets started in 1997 and the unit began producing refrigerators in 2003. By 2005, Samsung had become the market leader in panel TVs and in 2007, the Noida unit had started bringing out mobile phones.
Samsung has two production plants in India, the other being in Sriperumbudur, Tamil Nadu, apart from five research and development centres.