Samsung India in talks with state gov‘ts for third plant

Sep 14, 2015, 09:00 am

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Hong Hyun-chil, president and CEO at Samsung India Electronics, introduces a product at official launch event of the Galaxy Note 5 in New Delhi on Monday. The company is discussing details with Indian state governments to set up a third plant./ Photographed by Ha Man-joo

By Ha Man-joo, India correspondent, AsiaToday - Samsung India Electronics revealed on Monday the company is discussing the details of a deal with state governments including Uttar Pradesh (UP) to set up its third plant in India. Besides, Samsung is putting efforts in supply chain management to ensure its market share in India against rival Apple.

An official from Samsung India Electronics told AsiaToday, "Samsung is negotiating land price with Uttar Pradesh to set up a third manufacturing plant in India. Building a plant in other regions would cost extra money and take time to implement the project, so the company is reviewing to expand either Noida or Chennai plant."

The official added, "Indian state governments are offering various benefits, such as land offering, tax rebate, electricity and water rate discounts, in order to attract Samsung's third plant project. The Telangana government made an incredible offer to provide land for free within an industrial zone, which is located only ten minutes from Hyderabad International Airport."

Samsung has reportedly been seeking to set up a new plant by expanding its first plant in Noida of Uttar Pradesh. Leading Indian newspaper Times of India (TOI) reported on Saturday that Samsung's endeavor to set up a manufacturing unit in Noida has suffered a setback with UP department of revenue's outright refusal to give land to the company at a price lesser than the DM circle rate.

There is reportedly some dissent within the UP government on the land price issue. Principal secretary industry Mahesh Gupta said the issue was pending with the state government. "It is expected to be resolved soon," he said.

In addition, Samsung India Electronics CEO Hong Hyun-chil is strengthening the company's supply chain management by touring small cities in India to cope with rival Apple waiting to release its iPhone 6s series next month. Samsung aims to lead the 'most loved brand by Indians' to sales through supply chain management.

Meanwhile, Samsung held its position as the most attractive brand in India in a survey by Mumbai-based TRA (formerly Trust Research Advisory) released on Sept. 10.

#Samsung India #Uttar Pradesh #third plant #Hong Hyun-chil #Apple 
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