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Samsung & Sony looking to setup manufacturing bases in India


Samsung and Sony have announced plans for setting up manufacturing bases in India as a part of the Make in India initiative, reports Trak.in. The report mentions that Samsung is currently in talks with the UP government for the same.

Samsung will reportedly invest as much as $500 million to $1 billion in the manufacturing unit that will produce smartphones and tablets for the company. Tamil Nadu and Gujarat are the other states the company considered for the plant. The company currently has two factories, in Noida and in Tamil Nadu, where it claims to manufacture 90% of the gadgets it sells in India.

We have mailed Samsung and Sony for further details, and will update when we get a response.

Note that in January, Samsung had revealed that it had invested Rs 517 crore towards the expansion of its mobile phone plant in Noida, Uttar Pradesh, under the UP Mega Policy. The company said it had also invested in a modern training facility spread over 35,000 sq. ft. within its manufacturing premises, to focus on capability building and skill enhancement of its employees.

As for Sony, Kenichiro Hibi, the head of Sony’s India operations, said at the Mobile World Congress in Barcelona, that the company was planning to launch an Indian manufacturing unit ‘very soon’. He mentioned that while final decisions have not been made yet, the company would look to manufacture both flat-panel televisions and smartphones in the country. For this, Kazuo Hirai, the president at Sony Corp, is likely to visit India soon, although there is no mention of which state the company is likely to setup its plant in.

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Manufacturing in India:

The Indian government has been encouraging domestic companies to start manufacturing electronics goods within the country instead of importing them and had approved National Policy on Electronics. National Manufacturing Competitiveness Council (NMCC) had also proposed the creation of a $1 billion fund to encourage telecom equipment manufacturing in India. The Cabinet had approved the setting up of two semiconductor wafer fabrication units at a cost of Rs 63,412 crore in India, earlier last year.

Spice Group recently announced it would invest Rs 500 crores to set up a manufacturing unit in Uttar Pradesh. The company had also signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh for the same, as per which the UP Government will support Spice in establishing the facility by providing the necessary infrastructure, ecosystem and incentives under various schemes.

– In April last year, mobile phone manufacturer Micromax has also started manufacturing devices in the country, in its Rudrapur plant. Previously, the company imported devices from China where it has tie-ups with manufacturers such as Foxconn.

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