Samsung India, which has the second-highest market share following Xiaomi, is investing $500 million (Rs 3500 crore) over a three-year period to make smartphone displays in India.
Samsung India, which has the second-highest smartphone market share following Xiaomi, is investing $500 million (Rs 3500 crore) over a three-year period to make smartphone displays in India by setting up a manufacturing plant in Delhi’s satellite city Noida, revealed regulatory filings. The loan is given for “utilisation towards its principal business activities, including to meet the investment and working capital requirements for the purposes of establishing its manufacturing unit in Noida,” the RoC document read. The India arm Samsung India Electronics has also transferred a part of its land parcel at Noida plant located in Sector 81 to Samsung Display Noida at a consideration of Rs 92.02 crore.
The filings sourced by the business signals platform Paper.vc said that the display arm has been set up with the principal business of manufacturing, assembling, processing and sales of displays (including their parts, components, and accessories) for all types and sizes of electronic devices. Also, Rs 92.02 crore consideration will be paid by the Samsung Display Noida to Samsung India Electronics in two instalments — first, 15 per cent at the time of execution of transfer deed/agreement and second, 85 per cent by January 31, 2020, together with interest at 7 per cent per annum.
Samsung India’s smartphone market share has declined from 23 per cent in Q3 2018 to 20 per cent in Q3 2019 while Xiaomi retained the lead throughout the period and had 26 per cent share in Q3 2019 in terms of smartphone shipments, as per public data available from Counterpoint Research. The latest move is part of the company’s Make In India strategy. It had launched the world’s largest mobile factory in 2018 in Noida to “double its current (July 2018) capacity for mobile phones in Noida from 68 million units a year to 120 million units a year, in a phase-wise expansion that will be completed by 2020,” the company had said.
The company has been fighting for market supremacy with relatively newer brand Xiaomi. Samsung had in September last year announced offering finance to potential smartphone customers in order to boost its sales in India, Reuters reported. The company has been making smartphones in India since 2007.