Sriperumbudur, Tamil Nadu, India – In a significant move bolstering the “Make in India” initiative, electronics giant Samsung India has announced an additional investment of ₹1,000 crore (approximately $120 million) in its existing manufacturing facility located in Sriperumbudur, near Chennai, Tamil Nadu. This expansion is a testament to Samsung’s continued commitment to the Indian market and its faith in the region’s skilled workforce.
The announcement, made by Tamil Nadu’s Industries Minister TRB Rajaa on social media platform X, highlights the positive impact of this investment, which is expected to create an additional 100 jobs at the facility. Minister Rajaa stated that this new investment “reinforces their faith in the labour force of Tamil Nadu.”
Expanding Production of Key Consumer Electronics
The Sriperumbudur plant is a crucial manufacturing hub for Samsung in India, primarily producing a range of popular consumer electronics including:
- Refrigerators: Meeting the increasing demand for various capacities and features.
- Televisions: Manufacturing a wide array of smart TVs and display technologies.
- Washing Machines: Producing both fully automatic and semi-automatic models to cater to diverse consumer needs.
This facility currently contributes significantly to Samsung India’s overall sales, accounting for approximately one-fifth of the company’s $12 billion (around ₹1 lakh crore) revenue in the fiscal year 2022-23.
Strategic Move Amidst Evolving Global Landscape
This investment comes at a time when India is increasingly being recognized as a key manufacturing destination for global tech companies. Samsung already has a substantial manufacturing presence in India, with another major plant in Noida. The expansion in Tamil Nadu could further solidify India’s role in Samsung’s global supply chain.
Notably, this announcement follows reports of recent labor unrest at the Sriperumbudur facility, with workers protesting over issues such as suspensions and demands for better wages and union recognition. Despite these challenges, Samsung’s decision to invest further in the plant indicates a long-term strategic focus on its Indian operations.
Boosting Local Economy and Job Creation
The ₹1,000 crore investment is expected to provide a significant boost to the local economy in Tamil Nadu, creating new employment opportunities and potentially fostering the growth of ancillary industries in the region. This move aligns with the Indian government’s push to encourage domestic manufacturing and attract foreign investment in the electronics sector.
Samsung’s Commitment to the Indian Market
Samsung has been a significant player in the Indian consumer electronics market for many years, holding a considerable market share across various product categories. While specific recent market share figures for refrigerators, televisions, and washing machines can fluctuate, Samsung is generally recognized as a leading brand in these segments, often competing closely with other major players. The company has been focusing on premiumization and incorporating advanced technologies like Artificial Intelligence (AI) into its appliance range to cater to the evolving needs of Indian consumers.
This latest investment in the Sriperumbudur facility underscores Samsung’s enduring commitment to the Indian market, its manufacturing capabilities, and its contribution to the country’s economic growth.