Samsung India Electronics Ltd, subsidiary of the Korean electronics major Samsung, will be investing $7 million (approximately over Rs 32 crore) in its air-conditioner factory.
This was announced by Mr R. Zutshi, Director (Sales) of Samsung India, at a press conference. He was in the city to announce Samsung's mega festival offer, which willbe nationally launched on Thursday.
According to Mr Zutshi, Samsung would be investing $2 (Rs 9.2 crore) million for the heat exchanger facility and it would be followed up by another $5 (Rs 22.9 crore) million for the extrusion process. Currently, Samsung holds a 17 per cent share in India's air-conditioner market. The company expects to increase its market share to 22-23 per cent in 2005. The air-conditioner market is also expected to grow from 0.8 million pieces per annum to 1.2 million pieces by next year.
Meanwhile, Samsung India is hoping to register a turnover of Rs 5,273 crore during the current year. Last year, its turnover was Rs 3,700 crore. Mr Zutshi said that 37 per cent of the revenue would be generated by the home appliances, and the rest by the audio-visual division. Samsung has also identified flat TV and frost-free refrigerators as its major growth drivers in the coming years. The flat TV segment has witnessed the highest growth followed by plasma displays and liquid crystal displays.
According to Mr Zutshi, the frost-free refrigerator segment isalso growing at a substantial rate in the country. Similarly, the share of flat TV in the total colour television market is 37 per cent.
In another development, the Indian operations of Samsung have been identified as headquarters of South West Asia. It will be looking after the operations in Nepal, Bangladesh, Maldives and three other neighbouring countries.