In a new announcement, Samsung India has said that the company will be doubling its smartphone production capacity in India by the year 2029. The firm will be investing Rs. 1,970 crore, which is equivalent to $300 million at the current exchange rate towards its Uttar Pradesh production plant. This will double the capacity of the plant by the end of 2019 and will likely give Samsung a bigger share in the Indian smartphone market.
The South Korean firm has stated that it has already received approval from the government of Uttar Pradesh and a memorandum of understanding has been signed by the two parties. HC Hong, the President and CEO of Samsung India, said that this investment is in line with the company's commitment to 'Make in India' and living by their promise to 'Make for India'. Hong then added that a bigger and more robust manufacturing plant will help address the needs and demands of its ever growing fan base in the region. A source who has knowledge regarding the deal has reported that Samsung will receive an additional 130,000 square meters of area for the expansion to come. Once the upgrade is complete, the plant will be able to produce 12 million smartphones a month, double the current output. Production of refrigerators will also be increased after the expansion. On top of that, a senior Samsung executive has said that with the expansion and increase of production, the plant will be able to export its products, but a time frame for that to occur has not been set.
Samsung's manufacturing plant in Noida was first established back in 1996 and currently employs 4,000 people out of the 40,000 people Samsung employs in India. The plant produces various Samsung products such as smartphones, television set, refrigerators, and other home appliances. With this expansion, the plant is expected to create an additional 2,200 jobs for the local population and also a much higher number of indirect jobs for suppliers as they will likely see an increase in business once production of electronics from the plant is doubled in the coming years. While Samsung is increasing its workforce in India, the company has laid off a large number of employees in other regions, during the first half of 2016.