Korean-major Samsung Electronics Company Ltd has signed a Letter of Intent with the Tamil Nadu government. The company is planning to make an additional investment of Rs350 crore in its facility at Sriperumbudur Industrial Park, near Chennai.
It may be noted, Samsung India Electronics Pvt Ltd, a 100 per cent subsidiary company of Samsung Electronics Company Limited, Korea, had entered into a Memorandum of Understanding (MoU) with the Tamil Nadu government in November 2006 to set up an electronics hardware manufacturing facility with a total investment of about Rs450 crore
The facility manufactures colour televisions, air-conditioners, washing machines and refrigerators, and another project for the manufacture of computer monitors including LCD monitors, computer printers and other technology products.
Samsung India has already set up the electronics hardware manufacturing facility, in SIPCOT Sriperumbudur Industrial Park, near Chennai for which the Government of Tamil Nadu has sanctioned a structured package of assistance to Samsung India.
Following which, in October 2010 during his visit to Korea Deputy Chief Minister of Tamil Nadu M K Stalin held talks with Samsung representatives and the company expressed its willingness to make additional investment in the existing manufacturing facility at Sriperumbudur.
In the expansion project, Samsung has proposed to manufacture products which may range from Consumer Electronics products, Information Technology products, Hand held Phones and parts or components of any of the above products.
“Samsung India has committed to make an additional investment of Rs350 crores in the expansion project and requested the Government to provide certain additional benefits and support,” according to state government’s release.
The Government of Tamil Nadu has agreed to consider the request of Samsung India. A Letter of Intent expressing the intention of Samsung India and the Government was exchanged today, said in the statement.
It is expected that additional 1,000 persons will get direct employment on account of this new investment.
The Letter of Intent was signed by Rajeev Ranjan, principal secretary to Government, Industries Department on behalf of the Government of Tamil Nadu and J S Shin, chairman and managing Director, Samsung India Electronics Private Limited on behalf of the Company.
