Samsung Electronics Co. Ltd., is set to open its largest mobile phone manufacturing factory in India on July 9 2018. The plant was first established in 1996 and was involved in manufacturing smartphones, refrigerators and flatscreen televisions.
A new investment of Rs. 4,915 Crore was made to expand the plant by a 35 acres. This expansion will lead to the production of 12 crore smartphones every year and generate 15,000 jobs for local people around the area.
The Prime Minister of India, Narendra Modi and the South Korean President Moon Jae-in will inaugurate the factory in Noida at 5 P.M., on Monday.
The factory will produce both low end smartphones as well as high end ones like Samsung Galaxy S9. Samsung Electronics Co. Ltd., plans to make India the export hub for European, Middle Eastern and African countries.
Among the 1.3 billion population of India, smartphone users amount to 425 million people. Since 2017, there has been a 14 percent increase in the demand for smartphones. This has been facilitated by Reliance Jio’s cheap data plans.
The Chinese smartphone manufacturer, Xiaomi Corp. has announced their plan to open three more factories in India.
Over the past one year, India has attracted the highest ever Foreign Direct Investment (FDI) amounting to the inflow of USD 62 billion. Last year, India was declared to be the second largest consumer of smartphones after China, leaving the United States (U. S.) behind.
According to a study conducted by Cisco Systems, by 2021 there will be 780 million smartphones in India. This will mean a 50 percent rise in demand from 2016.