Thursday, September 07, 2006

On Samsung deciding to invest more in India

The consumer electronics market of the country is growing at a breakneck speed and Samsung India, the Indian subsidiary of the South Korean major Samsung electronics, has played a strategic move by planning to invest in another plant. The new venture will be bigger and better than the existing one at Noida, according to the consumer goods producer.

Though Samsung is doing a great job, one cannot deny the fact that there is very stiff competition existing around in the market. With LG (the current business leaders in India according to Business World) too trying to expand its market in the country, the Indian multinational Videocon vying a top spot and Haier consumer electronics, the Chinese player growing commendably, Samsung is left with no choice but to increase its investment

As major business surveys would point out, Samsung has grown considerably in this decade. With this expansion plans in the hindsight it would only tighten its grip in the market. Expansion is the mantra of all companies and Samsung has only learnt it too well, one point at which Daewoo failed miserably. It will be interesting to watch how the competitors react to this move, especially Videocon the sole Indian runner.

This new plant setup would also contribute, if not significantly, to the Indian economy by introducing new job opportunities to the localities. ‘Standard products at reasonable price’ being the market catchword one can believe Samsung to drive better with its expansion and I don’t see anybody complaining.

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