Samsung to invest money in Noida plant

New Delhi: Consumer electronics major Samsung will invest Rs 4,915 crore to double its manufacturing capacity for smartphones and refrigerators at its Noida plant.

Electronics and IT Minister Ravi Shankar Prasad, who inaugurated the new unit at the facility, said that the manufacturing expansion plan will create 15,000 jobs. "Inaugurated new Samsung mobile manufacturing unit at Noida. New facility can produce 10 crore phones per year and create 15,000 jobs," he tweeted.

The Korean chaebol said that the investment would position the Noida plant as a major production hub. As as a result of the investment spread over the next two years in the Noida factory, the production capacity of smartphones will rise to 1.2 crore units a month or 14.4 crore a year from the existing 50 lakh, a Samsung official said.

The capacity for refrigerators would double to 30 lakh units per annum (against 15 lakh at present), and for TV panels to 26 lakh units (from 13 lakh), the official added. "The investment reaffirms Samsung's commitment to Make- in-India and Make-for-India and to the state of Uttar Pradesh," a company statement said.

The Noida plant was was set up in 1996 and is the first of two manufacturing units in India for the company. The plant started with the manufacture of televisions way back in 1997, and mobile phone manufacturing unit was added in 2005.

"The expansion of the plant on an additional 35 acres of land adjacent to the current facility will double the production capacity of both mobile phones and refrigerators...," the statement said.

The company's investment proposal was recently approved by the UP Government under its Mega Policy. "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," the statement added.

The groundbreaking ceremony was held at the new site today in the presence of Electronics and IT Minister Ravi Shankar Prasad and NITI Aayog CEO Amitabh Kant.

Speaking on the occasion, HC Hong, President and CEO of Samsung Southwest Asia, said, "A bigger manufacturing plant will help us cater to the growing demand for Samsung products across the country".

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