World’s Largest Mobile Manufacturing Factory is Inaugurated in India
World's Largest Mobile Manufacturing Factory is Inaugurated in India
The world’s biggest mobile factory was launched in Noida near Delhi on Monday by Prime Minister Narendra Modi and South Korean President Moon Jae-in. The unit will have a capacity of fabricating 120 million phones a year, ranging from low-end smartphones that cost under $100 to the company’s flagship S9 model. It will build 10 million phones a month, 70% of which will be earmarked for domestic usage.
The South Korean tech giant makes 67 million smartphones in India and with the new plant, it expected to manufacture nearly 120 million. From 229 million smartphone users in 2017, the projected increase in the number of users in India is likely to reach 340 million by the end of this year. India’s smartphone users are expected to shoot up to a whopping 442 million by 2022.
Prime Minister Modi has highlighted the importance of cooperation with Korea in the process of implementing India’s Act East Policy. This step today would lend pace to Make in India, apart from empowering citizens. The 35-acre factory would not only generate more jobs but also make India a global export hub. The new plant, built at a cost of Rs 5,000 crore, will help Samsung raise its capacity in a phased manner, from 68 million units at present, to 120 million.
The facility will allow Samsung to manufacture phones at a lower cost due to its scale, while other phone making hubs in China, South Korea and Vietnam are getting expensive. Samsung had pumped in Rs. 4915 crore for expanding the unit, where it plans to not only cater to the Indian market but also export phones to Europe, West Asia and Africa.
According to a study by Cisco Systems, Last year, India overtook the US to become the world’s second-largest smartphone market after China. There will be 780 million connected smartphones in 2021, compared with 359 million in 2016.
Moon, who arrived in New Delhi on Sunday on a four-day visit to India, is expected to meet Lee Jae-yong, the son and heir of Samsung’s current chairman Lee Kun-hee. President Moon said he was happy that Korean companies are taking part in fast–paced growth of India and assured that the Korean government will do its utmost to provide all support.