Samsung mulls $200 mn investment in CPT plant

“Fresh investments in new projects in India will be through the holding company. We are firm in our commitments to India,” said Jae-Hak An, corporate executive counsellor, Samsung Electronics. The Korean business group is also considering fresh investments in Samsung India Electronics Ltd (SIEL) – where it holds 51 per cent of the equity capital – and specific projects are currently under study.

SIEL has already launched a range of colour TV sets, audio and video ranges in the Indian market. “It is also planning to launch a host of other products like refrigerators and microwave ovens. In the next phase, SIEL is planning an outlay of Rs 200 crore to gain a foothold in the white goods sector, both in manufacturing and retailing,” said a company official. As part of its business plan, Samsung has planned to invest $ 20 million in a new refrigerator plant in India.

Regarding the colour picture tube plant, Seung-Taek Shin, general manager, Global Operations, informed that “the size of the investment and capacity will be adjusted when it is finalised.” Although the company earlier planned a 3 million units capacity, it decided to conduct another feasibility study fearing excess capacity.

Jae-Hak An said the group was satisfied with the progress made by its 50:50 joint venture with Larsen & Toubro called L&T-Samsung Telecommunication Ltd. This company is expected to start operations by end of this month. “Samsung views India as a market with tremendous potential and we are optimistic that the economic reform process in India will continue to move forward,” he said.