Samsung Electronics has decided to double the production capacity for its main Indian factory. The company has announced that it will spend a massive 49 billion Indian rupees in buffing up the capabilities of its main factory, which is used to manufacture smartphones, fridges and televisions.
Samsung said that over the course of three years, it will expand its factory over an additional 35 acres, spending well over $700 million in the process. This expansion will take place in an area near the outskirts of the Indian capital of New Delhi.
The move comes even as Samsung’s biggest rival Apple has also started manufacturing smartphones in the country. Manufacturing iPhones here is expected to allow the Cupertino giant to price its devices lower, and thus let it break into the price conscious market in earnest.
The country is looming in importance to smartphone makers because even as sales in China stagnate due to saturation, India appears as the next hot destination to take up the momentum. There is still a huge percentage o the populace waiting to purchase their first smartphone and as such, a lot of sales are just waiting to happen.
Samsung’s announcement to ramp up its manufacturing capabilities also comes in a favorable political climate. After all, the US is not the only country pushing for corporations to set up their manufacturing facilities within its borders. PM Modi’s Make In India initiative and the overall environment is highly opportune to companies looking to make their wares within Indian borders.
