Samsung plans 2nd facility in Chennai

Samsung India, the subsidiary of $56.7 billion South Korean consumer electronics giant Samsung Electronics Ltd, will invest about $100 million for setting up its second manufacturing facility in the country (in Chennai). The company will sign a pact with the Tamil Nadu government on Friday.

The second manufacturing unit is expected to come up next year, which is likely to serve as an export hub and double its overall manufacturing capacity to about 10 million units per annum. Chennai has been chosen because of its natural advantages such as a port and an upcoming SEZ.

"The initial investment in the manufacturing facility will be around $100 million but we will continue to pump in more as the plant gets upgraded. The plant would have parallel manufacturing facilities for the domestic and international markets," Suk Ha Oh, president and CEO (South West Asia), Samsung Electronics Ltd, told Business Standard. The Indian subsidiary had submitted the blueprint to the multinational's headquarters in Seoul, which gave it the go ahead just last week.