Korean technology giant Samsung on Monday inaugurated the world’s largest mobile phone factory at its Noida facility, providing a fillip to the Narendra Modi government’s efforts to promote manufacturing in the country, and also signalling its intent to take on Chinese counterparts, which have been dominating the Indian market.
The facility was jointly inaugurated by Prime Minister Modi and the visiting South Korean President Moon Jae-in, underlining the significance attached to the project.
“Today is an important day in making India a global hub for manufacturing. Our push for ‘Make in India’ is not just part of our economic policy, but a commitment for bilateral ties with countries like South Korea,” Modi said.
The facility will help Samsung double its current capacity for mobile phones in Noida to 12 crore units a year, in a phase-wise expansion that will be completed by 2020.
In June 2017, Samsung had announced an investment of ₹4,915 crore to add capacity at the Noida plant, under the Uttar Pradesh government’s Mega Policy. The plant was set up in 1996.
Samsung India also launched its ‘Make for the World’ initiative, whereby it aims to export mobile handsets produced in India, to overseas markets.
“Our Noida factory, the world’s largest mobile factory, is a symbol of Samsung’s strong commitment to India, and a shining example of the success of the government’s ‘Make in India’ programme. Samsung is a long-term partner of India. We ‘Make in India’, ‘Make for India’ and now, we will ‘Make for the World’,” said HC Hong, Chief Executive Officer, Samsung India.
He said the company is aligned with government policies and would continue to seek their support to achieve “our dream of making India a global export hub for mobile phones”.
According to analysts, it is a win-win situation for both Samsung and India. “It will help them (Samsung) more effectively leverage the R&D that has been going on for a long time now. Now, it has a very market-oriented R&D, and the largest facility to utilise that in India,” said Faisal Kawoosa, Head - New Initiatives at CyberMedia Research.
For India it is a big positive at a time when we see most of the anchors of ‘Make in India’, domestic brands dwindling with their performances. “Mobile manufacturing in India has been [riding] on the shoulders of Chinese brands of late, but the expansion of a brand like Samsung will send a very positive message across the globe. This will [also] help the ecosystem and auxiliary industries grow as they will have demand to be met,” he added.