Samsung will invest INR4.9 billion ($760 million) in India to double its production capacity for handsets, a month after Apple began producing iPhones in one of the world’s largest smartphone markets.
In a statement confirming earlier reports, Samsung said it would expand its factory in Noida, outside capital city Delhi, with 35 acres of land to increase production of mobile phones and refrigerators in the country.
Samsung’s biggest rival Apple recently started producing its iPhone SE smartphones in India, as the US company also looks to establish a base in a country where smartphone shipments grew 14.8 per cent year-on-year to 27 million units in Q1 2017 according to research company IDC.
While Samsung maintained its position as the top smartphone seller in India during the period with a 28 per cent market share, it faces increasing competition from China-based vendors including Xiaomi and Vivo, which held shares of 14.2 per cent and 10.5 per cent respectively.
Samsung, which has two manufacturing plants in India, said the planned investment reconfirms its commitment to Prime Minister Narendra Modi’s Make in India vision.
“Today, on the back of the digital India movement led by millions of young Indians, we are witnessing a rise in adoption of electronic devices, smart appliances and mobile phones,” said HC Hong, president and CEO of Samsung southwest Asia.
“A bigger manufacturing plant will help us cater to the growing demand for Samsung products across the country.”