Samsung India is one of the biggest names in consumer products in India and has overtaken many home grown companies such as ITC and Hindustan unilever in terms of revenue. But a curious pattern has shown itself in the past week. The 70% of the employees who a draw salary more than 1 crore ($150800) are of Korean origin.
The number of personals who draw a salary of 1 crore or more is at 116 and 81 of them are Korean. The registrar of companies(ROC) has also revealed that the number was at 95 a year ago and Samsung India has done well to expand its reach within India. This reach didn’t necessarily convert into profit growth.
Samsung India has completed 20 years in the subcontinent and this data shows that discrimination of the Korean conglomerate in keeping the Indian national away from the top position.
“While the Korean and Chinese companies follow a ratio of 70:30 or 80:20 in their employee base, whereby the dominating number of employees will be from the local market, the same rule is not followed for senior level roles,” said James Agrawal, managing director (India & Thailand) at BTI Consultants, an executive search and HR consulting arm of Kelly Services. “This results in more number of expats earning top salaries or in top critical roles. This is a cultural issue in these corporates,”.
Even though the revenue is increasing, the profit grown has been dipping owing to increase cost in business expansion and increase retail footprint.
India represent one of the bright spot in Samsung’s quarterly results and Samsung India is working aggressively to get its products in hands of everyone. It has launched the flagships such as the note 5 and galaxy s6 with competitive prices even though the rupee has seen a severe decline and is also offering exclusive phones such as the tizen z3.
Stay tuned for this developing story.
