PM Modi inaugurates world's largest mobile factory in Noida, UP

Samsung has launched the world's largest mobile factory in Noida, India. The factory was officially inaugurated by Prime Minister Narendra Modi and visiting South Korean President on July 9, 2018.

Jul 10, 2018 08:20 IST
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Samsung has opened the world's largest mobile factory in Noida, India. The factory was officially inaugurated by Prime Minister Narendra Modi and visiting South Korean President Moon Jae-in on July 9, 2018.

The Electronics facility was inaugurated on a factory plot measuring 35-acre at Sector 81 in Noida, Uttar Pradesh.

Key Highlights

The factory inauguration marks the first-ever state visit of South Korean President Moon Jae-in.

The South Korean President will be accompanied by first lady Kim Jung-sook, senior cabinet members, officials as well as industry captains.

A helipad has been made adjacent to the factory for the smooth visit of the high-level dignitaries.

The de facto head of Samsung Electronics, Lee Jae-Yong, departed for India on July 8 to lay the groundwork for further expansion in the Indian smartphone market.

With the opening of the new facility, Samsung will double its current capacity for mobile phones in Noida from 68 million units a year to 120 million units a year, in a phase-wise expansion that will be completed by 2020.

Samsung’s growth in India

Samsung’s Noida plant is the first of the two manufacturing facilities to be set up in the country for the company. It was set up in 1996.

The plant started by manufacturing Televisions in 1997 and the mobile phone manufacturing unit was added in 2005.

In 2012, Samsung became the leader in mobile phones in the country and the Noida facility rolled out the first-ever ‘Galaxy S3’ smartphone.

The company currently has over 10 percent of its overall production in India and aims to take it to 50 percent over the next three years.

In June 2017, Samsung announced an investment worth Rs 4,915 crore to expand the Noida plant to increase its manufacturing capacity.

Besides the factory in Noida, Samsung also has a production unit in Sriperumbudur, Tamil Nadu, five research and development centres and one design centre in Noida, employing over 70,000 people.

Impact of Expansion

Samsung is currently making 67 million smartphones in India and with the new plant being functional, it is expected to manufacture around 120 million mobile phones, nearly double the number.

The new facility is also expected to double Samsung's production capacity of consumer electronics such as refrigerators and flat-panel televisions, further consolidating the company's leadership in these segments.

It is also expected to reduce the time taken by goods to reach markets and create more than 5000 new direct and indirect jobs.

The new facility will also enable the South Korean Technology giant to add some local features to its devices powered by research and development done in the country.

About Samsung India

Established in 1995, Samsung India laid the foundation stone of Noida plant in 1996.

In 1997, production commenced at its facility and the first television was rolled out. Refrigerator production began in 2003.

By 2005, Samsung had become market leader in panel TVs and in 2007, the Noida facility started manufacturing mobile phones. Today, Samsung is the market leader across mobile segments.

India is among the top five smartphone markets globally for Samsung.

In comparison to other markets such as Korea and Brazil, which are not growing significantly, India poses a huge opportunity for growth across price segments, including 2G feature phones.

Samsung India registered 27 per cent growth in mobile business revenue for the financial year 2016-17, accounting for a whopping Rs 34,300 crore of its reported Rs 50,000 crore sales.

According to HC Hong, President and CEO, Samsung India, a bigger manufacturing plant will help the company cater to the growing demand for Samsung products across the country.


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