Samsung To Pump In $10 Million Into Bangalore R & D Centre
Samsung Electronics, the $36-billion Korean electronics major, is investing another $10 million to expand its software research and development (R&D) operations in Bangalore next year.
The company has plans to invest around $10 million every year in its software centre.
The Samsung software research centre was set up in 1996 in India and since then the company has invested around $8.2 million in its domestic research operations.
Also Read
A plan to increase the number of people in the research centre from the present 200 to 800 within the next three years is also on cards.
The functions of the research and development unit will now be expanded to include the information technology and convergence products. Also, the centre will develop new and innovative digital products which is the company's focus area. At present, research operations are limited to the telecommunications products.
"Software development is India's core competence area. The key focus area for Samsung is to combine this software strength with Samsung's expertise in hardware. Samsung Electronics has many products and groups like semi-conductors, personal computers, and digital products which require a high level of software development. Hence, the chaebol will be expanding its research operations by way of additional man-power, investments and scope of operations," said Samsung Electronics vice-chairman and chief executive officer Jong Yong Yun.
The company recently invested around $10 million in setting up a manufacturing unit for colour monitors in India. By 2005, it plans to increase this investment to around $35 million. The colour monitor production at Noida facility, in the first two years, will be used for domestic consumption. After expansion of the plant, the unit will be used for exports as well, Yun said.
The group has already invested $1.38 billion in 11 research and development centres all over the world. These centres employ over 11,000 researchers. Telecommunications and digital media products contribute to 53 per cent of the chaebol operations worldwide. While home appliances contribute to 11 per cent, semi-conductors contribute to 36 per cent of its operations.
The Indian arm is targetting to clock a turnover of Rs 2,100 crore for the current fiscal and the projected profits for the present fiscal stand at around Rs 60 crore. The net profit of the company touched $2.8 billion in 1999. The projected target for the current fiscal has been pegged at $6 billion.