Microwave ovens that cook tandoori
bread, smartphones that understand
Tamil and washing machines designed t
deal with humid, dusty cities: all part of
Samsung Electronics' push to conquer
India and offset a global slump.
The consumer electronics giant is bettin
big on Asia's third-largest economy, at a
time when overall sales have struggled
against rivals like Apple. In January,
Samsung reported its first annual group
profit drop since 2011, and in February
its first wage freeze for employees in
Korea in six years.
One source familiar with Samsung said
the group, one of the biggest players in
the Indian consumer electronics market,
would invest up to $1 billion in
manufacturing units and in research an
development, adapting products to local
taste and needs.
While Samsung does not give a figure fo
its investments or revenue targets from
India, senior officials say it plans to
invest heavily in manufacturing and
research. It already uses a 10,000-stron
development team to tailor everything
from fridges to air conditioning units for
Indian consumers.
"While Prime Minister Narendra Modi is
talking about 'Make in India', we are
saying 'Make for India'," said Ranjivjit
Singh, chief marketing officer for
Samsung in India.
"It's not just about manufacturing, that
we've been doing anyway. But we are
making products designed for India, and
this doesn't happen by luck."
Singh said Samsung was also
considering adding a new manufacturin
unit. It already has three research centre
and two factories.
"A lot of states have been approaching u
for a new factory, but it is premature to
talk about investments," he told Reuters.
Samsung is under intense pressure as
rivals Apple and China's Xiaomi threaten
its position as global leader in
smartphones, key to its bottom line.
In India, Samsung is seeing strong
competition from local company
Micromax , which has moved beyond
phones into categories like affordable
televisions and tablets.
Xiaomi, which launched in the Indian
market in July last year has also said it
would invest and begin local production
in India soon.
Samsung has been in India for two
decades and of the handsets it sells
locally, 90 percent are made at two
manufacturing units in the country. They
could also manufacture high end Galaxy
S6 phones locally for export, officials
said.
http://m.gadgets.ndtv.com/mobiles/news/samsung-relying-on-make-for-india-strategy-to-counter-global-slump-676905
bread, smartphones that understand
Tamil and washing machines designed t
deal with humid, dusty cities: all part of
Samsung Electronics' push to conquer
India and offset a global slump.
The consumer electronics giant is bettin
big on Asia's third-largest economy, at a
time when overall sales have struggled
against rivals like Apple. In January,
Samsung reported its first annual group
profit drop since 2011, and in February
its first wage freeze for employees in
Korea in six years.
One source familiar with Samsung said
the group, one of the biggest players in
the Indian consumer electronics market,
would invest up to $1 billion in
manufacturing units and in research an
development, adapting products to local
taste and needs.
While Samsung does not give a figure fo
its investments or revenue targets from
India, senior officials say it plans to
invest heavily in manufacturing and
research. It already uses a 10,000-stron
development team to tailor everything
from fridges to air conditioning units for
Indian consumers.
"While Prime Minister Narendra Modi is
talking about 'Make in India', we are
saying 'Make for India'," said Ranjivjit
Singh, chief marketing officer for
Samsung in India.
"It's not just about manufacturing, that
we've been doing anyway. But we are
making products designed for India, and
this doesn't happen by luck."
Singh said Samsung was also
considering adding a new manufacturin
unit. It already has three research centre
and two factories.
"A lot of states have been approaching u
for a new factory, but it is premature to
talk about investments," he told Reuters.
Samsung is under intense pressure as
rivals Apple and China's Xiaomi threaten
its position as global leader in
smartphones, key to its bottom line.
In India, Samsung is seeing strong
competition from local company
Micromax , which has moved beyond
phones into categories like affordable
televisions and tablets.
Xiaomi, which launched in the Indian
market in July last year has also said it
would invest and begin local production
in India soon.
Samsung has been in India for two
decades and of the handsets it sells
locally, 90 percent are made at two
manufacturing units in the country. They
could also manufacture high end Galaxy
S6 phones locally for export, officials
said.
http://m.gadgets.ndtv.com/mobiles/news/samsung-relying-on-make-for-india-strategy-to-counter-global-slump-676905
