Samsung is one of the companies that have led the smartphone market in India, now it is investing $500 million in its India operations to make a manufacturing plant to produce displays, which they are planning to build on the outskirts of New Delhi.
Included tax benefits
Earlier this month, the company revealed the investment and its intentions via a filing to the local regulator. The South Korean giant declared the plant would manufacture displays for smartphones as well as a wide variety of displays for other electronic devices.
According to the filing, the company revealed that it has allotted some of the land areas from its existing factory in Noida for the latest plant. In 2018, Samsung started a factory in Noida that it declared was the largest mobile manufacturing plant in the world. For building and starting the factory, the company had claimed to spend about $700 million.
Samsung is hoping that the new plant should help it further amplify its capacity to manufacture smartphone components locally and harness a range of tax benefits that New Delhi is offering.
Those tax benefits are going to be useful in facing off one of its rivals Xiaomi, the smartphone vendor from China that put an end to Samsung’s lead in India.
Now, the second-largest smartphone player in India is Samsung, which is also the second-largest market in the world with nearly 500 million smartphone users. In recent months, the company has also lost market share to Realme which is a Chinese brand and it is ready to take over the South Korean giant in the quarter that got finished in December last year, according to few analysts. Samsung, the second-biggest smartphone vendor (as explained above) in India following Xiaomi Corporation from China saw its market share fall to 20% in the country in the third quarter, from 25% three months earlier, according to data from researcher Counterpoint.
Will Samsung surpass Xiaomi?
This move by Samsung is going to be a boon for India which is competing with nearby competitors such as Vietnam to appeal global smartphone firms under the government’s “Make in India” drive.
According to the plan, Samsung Electronics is going to offer ₹35 billion ($492.31 million) in loans and provide a piece of land in Noida for ₹920 million to its display unit, Samsung India Electronics Private Ltd stated in a filing dated January 3.
The new display factory is going to support Samsung Electronics in securing local supplies of one of the most expensive smartphone components at a time when the South Korean firm is also combating to ward off competition from its Chinese rivals in India.
Hello, I’m Anna Yeo. If you like my news coverage, please drop a good word in my inbox. I’m journalist by profession and have been part of many major reporting across the globe. I like to write crisp and factual news. I have completed my masters degree in journalism. Feel free to contact me at [email protected]