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Samsung (I) to test-market its IT products sans facility
Ashu Kumar
New Delhi : Samsung Electronics India, a 100 per cent subsidiary of Samsung for IT and telecom products, has been granted permission to market its high value technology products such as desktop computers, fax machines and printers without the obligation of setting up manufacturing facilities in India. The move is expected to accelerate the availability of these product from Samsung in the Indian market. The company has been planning to introduce its branded computers and printers in local market for quite some time. The permission has been granted to the Korean company in response to its request to remove the condition in its subsidiary approval which says, "The approval is subject to the condition that test marketing of products such as telephones, modems, computers and printers will be for a period of two years and the company would simultaneously set up manufacturing facilities for the same." According to government sources, the request has been approved by the Financial and Investment Promotion Board(FIPB) and recommended to the concerned ministries.FIPB has observed that the company has a good reputation and dealing in hi-tech items with a good track record for setting up manufacturing facilities in India and therefore be permitted to market high technology products for two years. In its application submitted to the government, Samsung has requested that the intention of the company behind the request for removal of the condition is to feel the market pulse for some more time and to develop a proper market of these products before setting up the manufacturing facilities in India. The company stated that some of the products are very technology heavy and it is not feasible to manufacture them in each market, the company operates in. Moreover, its is not economically feasible to undertake manufacturing operations or initiating investments in such facilities without understanding the market dynamics, it added. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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