The Hindu Business Line : Samsung mulls mobile manufacturing here

SAMSUNG Electronics is studying the feasibility of manufacturing mobile handsets in India, and is all set to pump in more funds to market its handsets in the country.

The idea stems from the phenomenal growth in the subscriber base for both GSM as well as CDMA technologies. "We are exploring the option of setting up a manufacturing facility in the country," Samsung India Electronics' Country Head for Telecom, Mr Kunal Ahooja, told Business Line.

He also said that a special team had been formed for this purpose. "Samsung has always been a manufacturing-oriented company. We are committed to this market," Mr Ahooja said.

Samsung has a facility near Delhi which makes consumer electronics and white goods. According to him, it would not be difficult for Samsung to manufacture handsets as it would not require heavy investments.

He said the company was likely to invest more in India to market its handsets. It had announced an investment of around $6 million in 2003-04. "We expect to exceed that investment this year, though the amount has not been firmed up yet."

He said the company planned to introduce between 25 and 30 more mobile handsets in the country during 2004, most of which will have colour display and camera. It has already launched 10 handsets with price tags ranging from Rs 4,000 to Rs 25,000.

According to Gartner, Samsung is the second biggest player in the mobile phone market with a 20 per cent market share in the GSM segment. It is also the second largest in both GSM as well as CDMA segments with a market share of 29 per cent.

Mr Ahooja said the company hoped to double its market share during this year. "We expect to keep pace with the industry's growth which is expected to double during this year," he said.

Nokia leads the market with a share of 50 per cent in the GSM segment and has a 33 per cent share in both GSM and CDMA segments.