Samsung Electronics to invest in 2nd factory
Samsung's suppliers will be given 40 acres which will be located in an SEZ and domestic tariff area, reports GC Shekhar.india Updated: Nov 10, 2006 19:42 IST
South Korean giant Samsung Electronics announced on Friday that it would invest Rs 450 crore ($100 million) to build its second Indian factory at Sriperumbudur near Chennai, bigger than its existing plant at Noida and expected to start commercial production in August next year.
The facility would also be Samsung’s global export hub for countries in South Asia, Middle East and Africa. Samsung's component suppliers would be allotted 40 acres next to Samsung's 80-acre facility, which would be partly located in a special economic zone (SEZ) and partly in the domestic tariff area, company officials said.
Since the south accounts for about 30 percent of Samsung's Indian market share, and also its fastest growing zone, it made sense to locate the second facility in the region, said R Zutshi,
Samsung India's deputy managing director, after the company signed a memorandum of understanding (MoU) with the Tamil Nadu government.
The Rs 284-crore, 50-acre DTA project will make CTVs, refrigerators, air conditioners and washing machines while the Rs.166 crore, 30-acre SEZ unit would make computer monitors, printers and other technology products, an official statement said.
Printers would be made for the first time in India by Samsung. In the first year the company plans to produce 1.5 million flat CTVs and 1 million monitors.
Communications Minister Dayanidhi Maran said the facility would employ 2,500 people directly and another 1,500 through its suppliers.
Reuters reported from Seoul that Samsungtargets sales of $5.5 billion in the country for 2010 in a market set to grow 12-15 percent a year.
First Published: Nov 10, 2006 19:42 IST