New Delhi: Just months after Samsung inaugurated its new mobile phone manufacturing facility in Noida, which is also the world’s largest mobile factory, the tech giants is reportedly exploring a plan to move its TV production unit out of India.
Samsung is reportedly looking to shift its Chennai facility and plans to start importing TV units from Vietnam, it’s largest production hub.
As per a ToI report, the company has already alerting its local suppliers about its withdrawal plans. The Chennai-based TV manufacturing plant of Samsung produces around 3 lakh units every year.
Ironically, the shifting plan has come come just months after joint inauguration of its Noida facility by Prime Minister Narendra Modi and Korean President Moon Jae-in.
The Noida facility was seen as a big boost for the ‘Make in India’ initiative.
According to the report, the move comes after the Union government introduced import duty on parts used in manufacturing TV panels.
The government, during the Union Budget, imposed an import duty on “open cell”, which is one of the most important parts of a TV panel.
Initially, a 10 per cent duty was imposed, which was later cut down to half after protests from TV manufacturers.
The Korea-based tech giant, in July had expanded the capacity of its mobile phone manufacturing plant in Noida from 67 million per year to 120 million.
“Our Noida factory, the world’s largest mobile factory, is a symbol of Samsung’s strong commitment to India. We ‘Make in India’, ‘Make for India’ and now, we will ‘Make for the World’. We are aligned with government policies and will continue to seek their support to achieve our dream of making India a global export hub for mobile phones,” Samsung India CEO HC Hong had said in inaugural function.
However, denying reports of any shift out, a Samsung spokesperson told ToI that the company “remains deeply committed to India and that no decision has been taken so far in terms of moving out the production of TV units.”
The revenues generated by Samsung in India was pegged at $8 billion in 2016-17.
Courtesy: Economic Times