Samsung to increase handset production to 20 million by 2010

With nearly five million new subscribers opting for new mobile connections every month, Samsung has decided to increase the GSM handset production at its plant in Manesar, Gurgaon to 20 million by 2010 from the current level of one million.

"Set up with an investment of $15 million, this fully automated and highly sophisticated unit will manufacture one million handsets per annum, which will be stepped up to produce 20 million units per annum by 2010," Samsung Telecommunication India said in a statement. The plans are also afoot to manufacture whole array of Samsung GSM handsets at Manesar, it said.

"The Indian GSM phone market is growing at over 60 per cent every year and Samsung is planning to be one of the leading players in this sector," its Managing Director H C Ryu said.

He said the new manufacturing unit at Manesar was a major step in this direction which would not only provide price advantage to produce locally but would also reduce time to market new models.

The manufacturing process started at Manesar plant with production of SGH x-200, a flip open phone weighing 77 gms. "With production going on stream, we are now going to expand our product portfolio, work heavily on product localisation, invest more in marketing campaigns and expand our distribution network," he said.