Financial Daily from THE HINDU group of publications
Wednesday, Dec 11, 2002
Financial Daily from THE HINDU group of publications Wednesday, Dec 11, 2002 |
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Marketing
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Strategy Corporate - New Projects Samsung planning to make fridges in India Our Bureau
Mr R. Zutshi, Vice-President (Sales), Samsung India Electronics Ltd, with Mr M.B. Lee, Vice-President (Marketing), at a press conference in the Capital on Tuesday.
NEW DELHI, Dec.10 AFTER establishing itself in the Indian market, the Korean consumer electronics and durables major, Samsung India Electronics Ltd, has taken another step towards producing its products here, by announcing its plans to set up a refrigerator manufacturing facility here. "This refrigerator facility, to be set up in Noida, will be Samsung's fourth overseas refrigerator manufacturing facility," Mr R. Zutshi, Vice-President (Sales), Samsung India said. Samsung has one plant in South Korea. Addressing a press conference, here on Tuesday, Mr Zutshi said "Samsung India will be investing $25 million for setting up the facility. The facility will have an initial production capacity of five lakh units per annum, which can be subsequently enhanced as per the company's requirement." Elaborating further Mr Zutshi said, the company would be manufacturing both conventional as well as frost-free models at this facility. The mass production is scheduled to commence from August 2003, he said. The company is targeting sales of two lakh units this year. Besides, the setting up of the facility will give Samsung the flexibility and the range to consolidate its position in the market, Mr Zutshi said, adding that it would also allow the company to introduce new refrigerator models with shorter lead times, as well as allow for more customised product offerings for the Indian market. "In fact, we will be boosting the home appliance research and development (R&D) activities at Samsung India next year. The company has already spent $12 million on R&D. It has initiated the R &D function for home appliances at its Noida centre in the second half of this year," he said. Having set up production facilities for washing machines and air-conditioners in the last one year has helped the company boost its home appliance business. It has achieved a growth of 25 per cent in its home appliance category during January-November 2002, Mr Zutshi said. Currently, Samsung India has manufacturing facilities for washing machines (production capacity three lakh units per annum), air-conditioners (production capacity one lakh units) and microwave ovens (one lakh units). The company's CTV plant has a production capacity of 10 lakh units per annum. Samsung India is expecting its home appliance contribution to be around 40 per cent of the total turnover.
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