Lately, several manufacturers across different industries are coming forward to manufacture their products in India. Now, after the endorsement of the Prime Minister Narendra Modi’s ‘Make in India’ initiative, tech makers Samsung and Sony have also come up with similar plans.
The tech giants are all set to establish their manufacturing base in India and this will in turn have a major impact on the future of the industrial and manufacturing progress of the country.
As per the reports, Samsung is in discussion with the UP Government to set up a manufacturing unit in the region to make smartphones and tablets. It is believed to be ready to invest between $500 million and $1 billion for the project. Samsung Mobile’s Head, JK Shin will be visiting India soon to proceed with the talks.
They are also planning to set up units in Tamil Nadu and Gujarat, but UP is their current favorite, added the reports. Samsung already has two factories in Noida and Tamil Nadu. Notably, around 90 percent of the gadgets that are sold by Samsung in India are manufactured in the country.
However, a Samsung spokesperson only confirmed that they are in talks with the state government of Uttar Pradesh where they already have a factory. He did not divulge more details regarding the same.
As per the industry experts, Samsung can overcome their lowered profits from Asia if they set up a new manufacturing unit in India. Such a unit will help them to distribute their offerings in a better way and also to bring down the costs. Moreover, Samsung can definitely meet the rapidly growing competition with Xiaomi in an efficient way.
When it comes to Sony, the firm’s Head of Indian Operations, Kenichiro Hibi announced that they are planning to set up a manufacturing unit in India very soon. He added that Sony is considering India for a long term growth. The decision is yet to be made, claimed the executive and that the potential products that will be made in the country include flat panel televisions and smartphones.
For Sony, India is their fourth largest market next to US, China and Japan and they make around Rs 10,000 crore of revenue from the country. Most of their products that are sold in India are made and assembled in the East Asian countries such as Thailand, Vietnam and Malaysia. If they do the same in India, they can definitely bring down the costs and can expand further into the market. Also, the Indian market can be used as a platform to extend their reach to the Middle East and African markets.
Sony Corp’s President, Kazuo Hirai is likely to visit India to finalize the plans of setting up a manufacturing unit in India soon.