Expansion, which will be fully complete in 2020, is expected to almost double Noida (New Okhla Industrial Development Authority), India's current phone producing capabilities from 68- to 120 million phones per year.
Prime Minister Narendra Modi on Monday will visit Noida in Uttar Pradesh, to inaugurate a new unit of Samsung plant. The plant in Noida was set up in 1996 where the company manufactured consumer products, including smartphones, refrigerators and television sets.
As Samsung can manufacture its full range of phones at this one facility, the company can react to the local market with the population now preferring phones costing below $250 due to levels of income. The 35-acre first-of-its-kind facility is expected to double Samsung's manufacturing capacity in the country.
"We are aligned with government policies and will continue to seek their support to achieve our dream of making India a global export hub for mobile phones", said HC Hong, Chief Executive Officer, Samsung India.
The Prime Minister noted that India now ranks second, globally, in the manufacture of mobile phones, with the number of mobile phone manufacturing factories rising from just 2, to 120, in about four years' time.
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'This 50 billion-rupee investment will not only strengthen Samsung's business ties in India, it will also play a key role in India-Korea relations, ' Modi said in a speech in Hindi at the inauguration of the plant.
The prime minister said India has 40 crore smartphones in use and 32 crore people using the broadband internet.
Speaking on the occasion, the South Korean President said the new Samsung unit will provide jobs to local people.
President Moon will be formally received by India's President Ram Nath Kovind on Tuesday before holding talks with Modi in the Indian capital. That is one reason Apple has struggled to gain market share in India, as most iPhone models are priced beyond US$500, according to a Bloomberg Intelligence report earlier this month.
"Unlike some other countries in the world which like Korean money but not Koreans, we like Koreans more than Korean money", Prabhu said in an apparent reference to uneasy relations between South Korea and some of its immediate neighbours.