South Korean multinational giant Samsung announced that it will be investing Rs 4,915 crore to double its manufacturing capacity for smart phones and refrigerators at its existing manufacturing facility in Noida (UP). This investment would create about 5,000 new jobs and the proposal of investment was recently approved by the Uttar Pradesh government under its Mega Policy.
The company said in a statement that it would spend the money to expand the factory on an additional 35 acres at the site. Over the next two years, the production capacity of smart phones will rise to 12 million units a month from the existing 5 million in the Noida plant.
"The expansion of the plant will act as a catalyst for the development of a robust electronics manufacturing ecosystem and is expected to generate thousands of new jobs, both direct and indirect, across the country," Samsung said in a statement.
The Noida plant is the company's first of two manufacturing units in India and was set up in 1996. The other plant is in Sriperumbudur, Tamil Nadu. The company also has five research and development centers and one design centre in Noida. Samsung India employs over seventy thousand people and is planning to expand its network to 1.5 lakh retail outlets.
"This new investment of Rs 4,915 crore is a testament to our continuing commitment to 'Make in India' and to Uttar Pradesh, which has been our partner right from the day Samsung's journey in India began. Persistent support from the state and local authorities in Noida has helped make our vision of Make for India a reality. Today, on the back of the Digital India movement led by millions of young Indians, we are witnessing a rise in adoption of electronic devices, smart appliances and mobile phones,” HC Hong, President and CEO, Samsung Southwest Asia, said. Further to this he also added that a larger manufacturing plant will help us provide to the increasing demand for products of Samsung across the country.
This new investment represents its commitment to the Indian government's 'Make in India’ and 'Make for India' initiatives. Indian Prime Minister, Narendra Modi's government kick started the initiative in an effort to attract foreign direct investment and the manufacturing jobs that it would bring with it.
June 30, 2017