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Samsung may be doubling its Phone Production in India

Samsung India, the South Korean smartphone giant’s counterpart in India, recently promoted two of its high-level executives to top positions. This seems to be part of its overarching move to boost production and sales of smartphones in India. The head of Samsung India’s mobile division, Asim Warsi, was promoted to the role of Global Vice President while Dipesh Shah, Managing Director of Samsung India’s R&D Institute, was promoted to Global Senior Vice President. IANS reported this directly, giving industry sources as reference.

The Samsung R&D Institute located in Bengaluru is one of the largest centers of mobile development and research out of the tech giant’s home country, South Korea. The promotions were to recognize the strong performance of Samsung India in 2017, and have occurred at a time when Samsung India is facing tough competition from its Chinese, Rival Xiaomi.

The executives, with their new designations, will continue to operate in India and oversee Samsung operations. This is in line with Samsung India’s plan to dramatically increase investment to strengthen its standing in the technological products’ market in India (and to gain a competitive edge over Xiaomi). The next big investment from Samsung India is supposedly to the tune of Rs. 4,915 crore (equivalent to US$756 million).

The whole of this investment is planned to be reserved for product manufacturing facilities in Noida (New Okhla Industrial Development Authority — one of the biggest planned cities in India). This was announced at the beginning of the year by Samsung itself and it’s likely that the tech giant will see its investment through under the supervision of the upgraded executives.

The ultimate goal of the expansion is to nearly double the tech giant’s production of Android smartphones in India, while promoting development and prosperity in the economy. This move will also help in solidifying relations of Samsung India with New Delhi. New Delhi has been citing the “Make in India” initiative a lot, recently. In fact, people have cited that Mr. Shah’s promotion is due, in part, to his role in getting the Samsung R&D Institute in line with the “Make in India” initiative.

Samsung India is pretty happy, according to some officials’ statements, with its performance across many categories of smartphone handsets in India. By the 3rd quarter of 2017, Samsung India enjoyed a pretty sizeable 65% market share of the Indian smartphone category by value. The occasion of Diwali further bolstered this performance statistic.

Xiaomi is proving a very formidable force when it comes to expansion, despite the growth in business seen by the South Korean tech giant in India. If Xiaomi keeps this up, industry trackers estimate that it may very well surpass its current position as the second largest handset vendor in India, Samsung being the first, (which happened in a short time frame of just 3 years), in the months that follow.

Samsung is bumping up its efforts in a bid to retain its standing in the market. Looks like they’re off to a great start.

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