Samsung to invest Rs 350 cr more in its Sipcot facility

Korean major Samsung Electronics Company Ltd today signed a Letter of Intent with the Tamil Nadu government for an additional investment of Rs 350 crore in its facility at Sriperumbudur Industrial Park, near Chennai.

Samsung India Electronics Pvt Limited, a 100 per cent subsidiary of Samsung Electronics Company, Korea, had entered into a Memorandum of Understanding (MoU) with the Tamil Nadu government in November 2006 to set up an electronics hardware manufacturing facility with a total investment of Rs 450 crore.

The facility manufactures colour televisions, air-conditioners, washing machines and refrigerators, and another project for the manufacture of computer monitors including LCD monitors, computer printers and other technology products.

Samsung India has already set up the electronics hardware manufacturing facility, in Sipcot Sriperumbudur Industrial Park, for which the government has sanctioned a structured package of assistance.

In October, during his visit to Korea, Tamil Nadu deputy chief minister MK Stalin held talks with Samsung representatives and the company expressed its willingness to make additional investment in the existing facility at Sriperumbudur.

In the expansion project, Samsung has proposed to manufacture products ranging from consumer electronics products, information technology products, hand-held phones and components of any of the above products.

Samsung India has committed to make an additional investment of Rs 350 crore in the expansion project and has requested the government to provide certain additional benefits and support, according to a state government release.

The government of Tamil Nadu has agreed to consider the request of Samsung India, and a Letter of Intent expressing the intentions of Samsung India and the government was exchanged today, the statement said. An additional 1,000 persons are expected to get direct employment on account of this new investment.

The Letter of Intent was signed by Rajeev Ranjan, principal secretary (Industries department), and J S Shin, chairman and managing director, Samsung India Electronics.