Opposite are open fields with grazing cattle, to the left are residential companies under construction, and to the right its existing facility – this is where Samsung has set up what is the world’s largest mobile factory.
Not China or South Korea – and certainly not the United States – the housing label of the world’s largest mobile factory immediately put Noida at the top of the global consumer electronics manufacturing map. .
The new 35-acre Samsung Electronics facility located in Sector 81 in Noida, Uttar Pradesh, will see Prime Minister Narendra Modi and South Korean President Moon Jae-in land together on a quickly prepared helipad adjacent to the factory to officially inaugurate it on Monday.
One of the first electronics manufacturing facilities established in the country in the early 1990s, the factory began manufacturing televisions in 1997. The current cell phone manufacturing unit was added in 2005.
In June of last year, the South Korean giant announced a Rs. 4,915 crore investment to expand the Noida plant and, after a year, the new facility is set to double production.
The company currently manufactures 67 million smartphones in India, and with the new factory operational, it is expected to manufacture nearly 120 million mobile phones.
Not only mobile, the expansion of the current facility will double Samsung’s production capacity of consumer electronics such as refrigerators and flat-panel televisions, further consolidating the company’s leadership in these segments.
According to Tarun Pathak, associate director of Counterpoint Research, the new facility gives Samsung an advantage by reducing time to market.
“This will help Samsung bring local functionality to devices powered by R&D here. Apart from that, the company may also provide export opportunities for Samsung to SAARC and other regions,” Pathak told the IANS.
Samsung has two manufacturing plants – in Noida and Sriperumbudur, Tamil Nadu – five R&D centers and one design center in Noida, employing over 70,000 people and expanding its network to over 1.5 lakh outlets.
Founded in 1995, Samsung India laid the foundation stone for the Noida plant next year. In 1997, production began and the first television was deployed. In 2003, the production of refrigerators began.
By 2005 Samsung had become the market leader in panel TVs, and in 2007 the existing Noida factory started manufacturing mobile phones.
In 2012, Samsung’s factory in Noida released the very first Galaxy S3 device.
The company currently has over 10 percent of its overall production in India and aims to increase it to 50 percent over the next three years.
“For Samsung, India is one of the top five smartphone markets in the world. The United States is saturated and Korea and Brazil are not experiencing significant growth. India is a big opportunity in all price segments including 2G multifunction phones. It makes sense that Samsung would build a bigger manufacturing base here, ”Jaipal Singh, senior market analyst, IDC, told IANS.
“They are now looking to create a complete ecosystem. After smartphones, they can embark on building high-end products in other categories like televisions, refrigerators, as advanced manufacturing in India is still lagging behind. With the new facility, Samsung is lagging behind. is going to have an advantage over its rivals, ”Singh noted.
According to HC Hong, president and CEO of Samsung India, a larger manufacturing plant will help them meet the growing demand for Samsung products across the country.
Samsung India, which saw a 27% growth in mobile business revenue for the 2016-17 fiscal year – accounting for a whopping Rs. 34,300 crore of its reported Rs. 50,000 crore in sales – won’t be able to hide the smile when the new factory starts production from July 9.