The Hindu Business Line : Samsung India signs pact with TN to set up manufacturing unit

Features
Commercial production is likely to commence in August
To manufacture colour TVs, colour monitors, refrigerators, ACs.
To cater to West Asia, SAARC and African markets.

WELL MET: Mr Dayanidhi Maran, Union Minister for Communications and IT, with Mr S.H. Oh, President and CEO, Samsung South West Asia, at a press conference in Chennai on Friday. — Bijoy Ghosh

Chennai , Nov 10

Samsung India Electronics Pvt Ltd, a subsidiary of South Korean major Samsung Electronics, will invest up to $100 million (Rs 450 crore) to set up a manufacturing complex at Sriperumbudur, near Chennai.

It signed a memorandum of understanding (MoU) with the Tamil Nadu Government for this venture .on Friday.

The MoU was signed by the State Industries Secretary, Mr Shaktikanta Das, and by the Samsung's South West Asia regional headquarters President and CEO, Mr S.H. Oh, in the presence of the Chief Minister, Mr M. Karunanidhi, and the Union Communications and IT Minister, Mr Dayanidhi Maran.

New facility

The new facility will come up in 80 acres and construction will start in January 2007. Commercial production is likely to commence in August, and it will employ about 2,500 people when fully operational, according to Mr R. Zutshi, Deputy Managing Director, Samsung India.

Fifty acres will be designated as the domestic tariff area and the remaining 30 acres will be a special economic zone (SEZ).

Of the proposed investment of Rs 450 crore, Rs 284 crore will be put in the DTA and the rest in the SEZ, according to a press release from the State Government.

Investment

In the first phase from 2006-09, the company will invest $70 million to manufacture colour television (CTVs), colour monitors, refrigerators, air conditioners, washing machines and printers.

In the second phase, from 2010 to 2011, the company plans to invest $30 million to enhance the production capacities, he told newspersons.

In the first year, the facility for CTVs and colour monitors will be set up and will have a production capacity of 1.5 million units a year and one million units a year respectively, Mr Zutshi said.

Global hub

The company is looking at the new facility to be a global manufacturing hub for Samsung and cater to the West Asia, the SAARC (South Asian Association for Regional Cooperation) and African markets.

Mr Zutshi said the company decided on Chennai for the second manufacturing complex (first is in Noida near Delhi) due to proximity to the port, good infrastructure and high quality manpower.

Another reason was that the State was the company's largest market, he said.

Mr Maran said that it was important that companies set up their manufacturing units in India as this would provide employment for semi-skilled workers.

The State Government has also set aside 40 acres for ancillary units for Samsung vendors.

This complex of vendors to Samsung is also likely to be a SEZ, Mr Shaktikanta Das, said.

More Stories on : New Projects | Consumer Electronics | Tamil Nadu

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