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Samsung opens world's largest phone factory in India

Reuters  |  MUMBAI 

By Sankalp Phartiyal

MUMBAI (Reuters) - has formally opened a new factory in India, which the South Korean group says is the world's biggest mobile phone manufacturing plant, part of its plans to expand production in the world's fastest growing major mobile phone market.

The factory in Noida, on the outskirts of New Delhi, will allow Samsung to make phones at a lower cost due to its scale at a time when other phone making hubs such as are getting more expensive, analysts tracking the sector said.

The factory, inaugurated jointly on Monday by Indian and South Korean Moon Jae-in, will also help Samsung to compete more effectively with rivals such as China's Xiaomi, which became India's biggest brand by shipments earlier this year.

"This 50 billion-rupee investment will not only strengthen Samsung's business ties in India, it will also play a key role in relations," Modi said in a speech in Hindi at the inauguration of the plant.

Samsung said last year it would spend 49.2 billion rupees ($716.57 million) over three years to expand capacity at its

The new factory will help Samsung to double its current capacity for in Noida to an annual 120 million units after the phased expansion plan is complete, the company said in a statement.

India, the world's second biggest market and home to more than a billion wireless subscribers, is big opportunity for Samsung where sluggish earnings growth has fuelled concerns that its mobile business is running out of ideas to underpin sales of its premium Galaxy devices.

EXPORT HUB

Samsung, which has been assembling phones in since 2007, also plans to export India-made handsets.

"We 'Make in India', 'Make for India' and now, we will 'Make for the World'," H C Hong, at said in the statement.

Narendra Modi's government has imposed taxes on imports of key smartphone components as part of a plan to encourage manufacturing in which would boost growth and create millions of new jobs.

While Modi's flagship 'Make in India' campaign is still a long way from delivering on ambitious job promises, the programme has had some success with the of and components. More than 120 local factories currently assemble and accessories like chargers, batteries, powerbanks and earphones in India, according to research firm

"It's a move that'll obviously play well for Samsung but it also gives a much-needed shot in the arm to India's as it will push rivals to consider expanding local production," said Navkendar Singh, an at

($1 = 68.6600 Indian rupees)

(Reporting by Editing by Jane Merriman)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 20:02 IST
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