Key Highlights :
The firm has started producing laptops in its Greater Noida facility, solidifying its manufacturing base in India.
The action strengthens the government’s “Make in India” policy by discouraging imports and improving local manufacturing.
Samsung leads the phone market but is not meaningfully established in laptops in India for the incumbents.
Key Background :
Samsung is a leader in the Indian business world in the field of electronics manufacturing for almost thirty years. Once it started its Greater Noida plant in 1996, the firm further diversified business activities to become one of the world’s world-class mobile phone manufacturing plants. The factory now caters to India’s home market and foreign markets through exports, establishing India’s position in Samsung’s global value chain.
The company over a period of time has developed a product lineup that includes smartphones, tablets, and wearables. Manufacturing of laptops is an organic expansion for the company, after it diversified the ability to manufacture and entered the consumer electronics segment in India.
Earlier this year, Samsung officials had recounted that the company’s strategy of producing laptops was one of the company’s strategies in India since the demand for personal computers was rising in India. The addition now, the factory plays a crucial role for the local consumers’ demand as well as for Samsung’s overall supply chain resilience plan.
The timing is also significant. India has been aggressively trying to persuade foreign technology firms to establish local production under the guise of “Make in India” and the Production Linked Incentive program. By commencing local manufacturing of laptops, Samsung is not only making such a fantasy a reality but also cutting imports and maximizing supply chain efficiency.
At a session with India’s IT Minister, Samsung’s leadership reiterated its resolve to making world-class technology manufacturing in the nation. This includes harnessing India’s human resource base, innovation ecosystem, and facilitatory policy environment.
While Samsung is the leader in India’s mobile phone industry, in the laptop segment it has created competition. But as local production is on the anvil, the company is able to call the shots in the area of cost composition, get ahead of planned delivery time, and customize products according to the Indian consumer’s preference.
In the long run, this move not only solidifies the base of electronics manufacturing in India but also raises the brand value of Samsung as a serious global technology player with long-term interests in the country.
About the Author
Abhishek Roy
Abhishek Roy is a Managing Editor at Business Minds Media India.