Recently, reported from New Delhi, Samsung, the World’s leading smartphone manufacturer is looking forward to establishing another, and in fact, third manufacturing plant in India, to manufacture smartphones and other manufacturing goods. Samsung has taken this initiative to support the “Make in India” campaign started by the Government of India to strengthen their economy, and eliminate unemployment.
A Samsung representative said, “Samsung Electronics sees India as a very important market. Being a leading player in the consumer electronics and durables business and India’s biggest television and smartphone manufacturer, we are committed to the idea of ‘Make for India’,”
Samsung is considering to establish their new manufacturing plants in Uttar Pradesh, Gujarat, or Tamil Nadu.
However, we are still unclear about investment details. According to the recent reports, the president of Samsung’s Mobile division, JK Shin, has recently visited India and discussed his plans for the establishment of the new manufacturing plant, allocating $500 million to $1 billion for the construction and land. The plant may be used for export purposes in the future.
Samsung has two manufacturing plants in Tamil Nadu, and Noida, since last 20 years, in India, where it has employed over 45,000 employees. Their plan to establish another manufacturing plant in India, proves that Samsung sees India as a very potential market.
In January, 2015, The South-Korean manufacturer Samsung was reported to have frozen the salaries of their employees in South Korea, for the first time in last six years, due to the loss in market shares in profits and sales that Samsung suffered in 2014. Samsung was able to make a profit of only $56 billion only, by the end of December, 2014, for the last year.
Analysts are unable to foresee an increase in their sales and profits, in the near future due to the increased competition. However, Samsung may see an increase in its profits if they manufacture improved chips and panels.
