Yes, this is absolutely true! Samsung India has set up what is supposed to be the world’s largest mobile factory. The premises of this new setup factory pictures open fields with grazing cattle, where to the left are under-construction residential societies and to the right are its existing facilities.
Definitely, quite a moment of pride for India, where not China or South Korea, and certainly not the US, have earned the tag of housing the world’s largest mobile factory. Thus, this has placed Noida directly on top of the world manufacturing map when it comes to consumer electronics.
This new 35-acre Samsung Electronics facility at Sector 81 in Noida, Uttar Pradesh, would see Prime Minister Narendra Modi and South Korean President Moon Jae, landing together at a quickly-prepared helipad adjacent to the factory to officially inaugurate it on Monday.
One of the first electronics manufacturing facilities to set up in the country in the early 1990s, the plant started by manufacturing TVs in 1997. Also, this current mobile phone manufacturing unit was added in 2005.
In June last year, the South Korean giant announced a ₹4,915 crore investment to expand the Noida plant and, just after a year, this new facility is all set to double the production.
Other than mobiles, the expansion of the current facility would, in fact, double Samsung’s production capacity of consumer electronics like refrigerators and flat-panel televisions, thus, consolidating the company’s leadership in these segments.
According to Tarun Pathak, Associate Director at Counterpoint Research, this new facility would provide Samsung an advantage by reducing the time to market. To this, Pathak added that “This will help Samsung bring some local features to the devices powered by R&D here. Apart from this, the company can also bring in export opportunity for Samsung to SAARC and other regions”.
Talking of Samsung India, it has two manufacturing plants, one in Noida and another one in Sriperumbudur, Tamil Nadu. In addition, there are five R&D centers, and one design center in Noida, employing over 70,000 people and expanding its network to over 1.5 lakh retail outlets.
By 2005, Samsung had become the market leader in panel TVs and in 2007, the existing Noida facility started manufacturing mobile phones. Also, in 2012, Samsung’s Noida facility rolled out the first-ever Galaxy S3 device.
The company currently has over 10 percent of its overall production in India which it aims to take it to 50 percent over the next three years. To this, Jaipal Singh, Senior Market Analyst, IDC added that “For Samsung, India is among the top five smartphone markets globally. The US is saturated and Korea and Brazil are not growing significantly. India is a big opportunity across price segments, including 2G feature phones. It makes sense for Samsung to build a bigger manufacturing base here. They are now looking at building a complete ecosystem. After smartphones, they can go into building top-of-the-line products in other categories like TVs, refrigerators as advanced manufacturing in India still lags behind. With the new facility, Samsung is going to have an edge over its rivals”.