Chennai to Get Samsung Manufacturing Unit

Samsung India Electronics has completed a Memorandum of Understanding (MOU) with the Government of Tamil Nadu, to set up a second manufacturing complex in Sriperumbudur, Chennai, to cater to the fast growing requirements for the company’s consumer electronics products in India.

The project could mean an investment of up to US$ 100 Million over a five year time frame starting from 2007.

“The growing demand for our products in southern India, the strong infrastructure available in the region coupled with its proximity to the port and the Tamil Nadu government’s investor friendly approach are the factors that prompted us to set up this complex in Chennai,” said R. Zutshi, deputy managing director, Samsung India Electronics. Under the Memorandum of Understanding, Samsung expects to commence the construction work on the 80 acres of land in Sriperumbudur in January 2007, and commence commercial operation in August 2007.

In the first phase, Samsung plans to first set up manufacturing facilities for color televisions, color monitors, refrigerators, air conditioners, washing machines, printers and other technology products. The facilities for color televisions and color monitors, to be set up in the first year itself, are expected to have a production capacity of 1.5 million units per annum and 1.0 million units per annum respectively. In the second phase of the project, the company plans to enhance the production capacities for the products mentioned above, that are being set up in Phase I.

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“We expect to manufacture our advanced LCD TVs and LCD monitors in this complex as well,” states Mr. Zutshi. Samsung expects to provide employment to 2500 people after full implementation of the project.

“We are looking at the new facilities becoming a global manufacturing hub for Samsung and will be manufacturing products at this facility not only for the domestic market but for the export markets as well.” said S. H. Oh, president & CEO, Samsung South West Asia Regional Head Quarters.

Samsung’s existing manufacturing complex at Noida, spreading over 30 acres, has production facilities for color televisions, color monitors, refrigerators and washing machines. The company also has R&D operations at its Noida complex—both for hardware (product customization) and software development, Samsung India Software Center (SISC) at Noida.