South Korean electronic major Samsung will restart manufacturing LED TVs in India through contract manufacturers from early next year, according to sources.
Samsung, which had shifted its entire TV manufacturing to Vietnam from Chennai last year, recently entered into an agreement with Dixon Technologies for production in India, sources close to the development said.
The sources, who did not wish to be named, pointed out that the environment is conducive for manufacturing after the government's recent move to roll back custom duty imposed on display panels to zero.
Presently, Samsung imports its portfolio of TVs from Vietnam under the Free Trade Agreement (FTA) between the two countries.
The sources indicated that Samsung is also in discussions with other contract manufacturers to meet the demand in the Indian market as the company is the largest player in the segment.
When contacted, a Samsung spokesperson declined to comment.
In September, the government had removed 5 per cent custom duty imposed on import of open cell TV panels (used to manufacture LED TVs) in order to promote local manufacturing.
The sources pointed out that the cost of importing TV sets from Vietnam turned out to be steep due to longer turnaround time.
By the time the product reaches India, the market dynamics changes, the sources said, adding that manufacturing in India would provide a strong impetus on this account.
However, Samsung would continue to import its high-end TV models from Vietnam and other locations, they said.
The Indian TV market is estimated to be around 14 million units. Majority of the market is controlled by three leading brands -- Samsung, LG and Sony. However, these brands are witnessing strong competition from new entrants like Xiaomi, Vu and Thomson.