Samsung plans producing Rs 3.7 trn worth mobile phones in India over 5 yrs

Smartphone maker Samsung plans to produce mobile phones worth Rs 3.7 trillion in India over the next five years, according to government sources.

The company has discussed its plan with senior officials in the Ministry of Electronics and IT.

People aware of the discussion said the company will be manufacturing smartphones worth Rs 2.2 trillion, priced above Rs 15,000 per unit, under the production-linked incentive (PLI) scheme.

"Samsung is now planning to make mobile phones worth $50 billion (Rs 3.7 trillion) in the next five years. Out of this, smartphones worth $30 billion will be produced under the PLI scheme," an official told PTI on the condition of anonymity.

Samsung did not respond to a query sent on the matter.

Apart from Samsung, major global players Wistron, Pegatron, Foxconn and Hon Hai and Indian companies such as Lava, Dixon, Micromax, Padget Electronics, Sojo, UTL and Optiemus have applied for benefits under the PLI scheme.

The government expects mobile phones worth Rs 11 trillion will be made in the country in the next five years.

 

According to estimates of the India Cellular and Electronics Association (ICEA), mobile phone companies will increase device production in the country to up to Rs 27.5 trillion under the PLI scheme.

At present, mobile phone production in the country is estimated to be over Rs 2 trillion per annum, employing around 500,000-600,000 people.

The government expects to attract Rs 1 trillion investments in the sector and sees manufacturing revenue potential of Rs 10 trillion by 2025.

It had notified three schemes on April 1 for the promotion of electronics.

These were schemes for the manufacturing of electronic components and semiconductors, modified electronics manufacturing clusters (EMC 2.0) scheme, and production-linked incentive scheme for large scale electronics manufacturing.

Samsung has been bullish on the government's Make in India initiative. It has set-up the world's largest mobile phone factory with an annual handset production capacity of up to 120 million units in Uttar Pradesh.

According to the ICEA, the total mobile phone market in India has crossed Rs 2 trillion in terms of value.

Samsung led India's mobile phone market with 24 per cent share in the April-June quarter, according to research firm IDC.