Samsung to invest $50m in India

By Sandeep Dikshit

SEOUL, MAY 14. The Korean chaebol, Samsung is planning to invest an additional $50 million in India over the next few years. Of this, $25 million will be invested in its soon-to-be operationalised colour monitor plant as part of the plan to strengthen its grip on the worldwide colour monitor market. The company's maiden attempt at manufacturing colour monitors is expected to fructify next month at an investment of $10 million. This will be followed up by $25 million to increase the capacity from the present $1-4 million by the year 2005.

Samsung sold 20 million colour display monitors in the last calendar year, accounting for global market share of 19 per cent in this segment. This year it has planned to sell 27 million sets and account for 26 per cent of the world market share but senior Samsung officials said the company could sell three millions more, leaving its close competitors far behind. ``We hope to open a wide gap with Phillips and LG,'' the Samsung Senior Vice- President, Mr. K. S. Kim, told visiting journalists here today. Familiar with the Indian market, Mr. Kim returned to the company's headquarters only last month after piloting Samsung through its initial years in India.

In India too, Samsung is aiming at becoming the largest manufacturer - seller of colour display monitors despite the slight souring of the IT euphoria. Samsung's India plant will be its seventh in the world and will be next to its TV manufacturing unit on the outskirts of Delhi in Noida. ``In the first year, it will produce one million sets, all for the domestic market. The capacity of the plant will be quadrupled with fresh investments of $25 million,'' said Mr. Kim Samsung will manufacture the highly popular 14 inch screen sized monitors besides the 15 and 17 inch sets.

In addition, Samsung is planning fresh infusion of $20 million for its existing CTV plant to increase the capacity from one million this year to four million sets. This will be over and above the $5.2 million to beef up its R&D development in Bangalore. The R&D centre, set up six years ago, has already received investment of $5 million so far. The new investment will enable the country to double the number of projects from the present 22. Most of the projects are in the area of telecom development, computer development and software for digital TVs.

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