Samsung Electronics has made a new investment of ₹1,000 crore in its factory in Chennai, reaffirming its commitment to increase production in India. The development was confirmed by T.R.B. Raja, Tamil Nadu Minister for Industries, Investment Promotion and Commerce, confirming the South Korean tech giant's move in a press conference on Friday.
Samsung's Promise to Indian Manufacturing
In spite of the early hiccups such as a September labour problem on the issue of wage talks and union recognition, Samsung has advanced aggressively in its Indian operations. The ₹1,000 crore investment is an indication of the company's strategy to stake its position in one of the region's fastest-growing consumer markets in the long term.
The Chennai facility has over 2,000 workers currently. It is among the key contributors to the supply chain of the Samsung India product and plays a pivotal role in the company's contribution in the domestic market for electronics.
Scope of Production and Strategic Importance
The plant manufactures a huge range of consumer electronics like TVs, refrigerators, and washing machines. Production contributes to approximately 20% of Samsung's total electronics product sales in India. The location of the plant in Tamil Nadu is also conducive to supply products readily in south and central India.
The added investment will trigger infrastructure development, capacity addition, and even automation, increasing Samsung's production muscle to absorb rising local demand.
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