Samsung India plans to invest $15 million (Rs 70 crore) in 2010 in an effort to ramp up its production facilities for home appliances.
“We have already invested $10 million for creating new product delivery lines at our Noida manufacturing unit. The remaining amount will be invested over the next few months,” said Ravinder Zutshi, deputy managing director, Samsung India Electronics.
He said investment figures could be revised upwards during the year. The company had invested around $10 million (Rs 47 crore) in calendar year 2009. Zutshi said the company is eyeing a robust 40 per cent increase in its revenue collections for the calendar year 2010. “India is a huge market but has a minor share in global revenue collections for Samsung.”
In 2009, India’s revenue contribution was 2 per cent. “We expect to contribute 3 per cent revenues in 2010 and take it to 5 per cent in the next couple of years.”
Samsung India mopped up close to $2.2 billion (Rs 10,200 crore) revenues in 2009 and is eyeing revenues of $3.08 billion (Rs 14,000 crore) in 2010. It is banking upon increased sales of products based on flat panels such as LCDs and plasma television and ACs.
The company rolled out its new series of air conditioners and is targeting to grab over 30 per cent market share for ACs. “We expect the AC vertical to contribute around 15 per cent of our revenues in 2010. The segment accounted for 8-9 per cent in the last calendar year,” he explained.