Samsung is likely to stop production of TV in India as the company plans to import the units from Vietnam, reported the Times of India. It is worth noting that the government introduced import duty in the Budget 2018 on key components that goes into manufacturing TV, making its commercial production unviable for the company.
“The company has sounded out some of its local suppliers about plans to curtail, and gradually withdraw production from Chennai,” the daily quoted sources as saying.
In India, Samsung manufactures around 3 lakh units of TV at its Chennai plant. However, Samsung did not respond to a detailed questionnaire sent by ToI regarding its TV manufacturing plans. “Samsung remains deeply committed to India. As regards to your query, no decision has been taken so far,” the ToI report quoted a Samsung spokesperson as replying to a question of moving out production from India.
According to the report, Vietnam is one of the biggest manufacturing bases for Samsung as it produces goods worth over USD 50 billion in the country. In Budget 2018, the government had imposed 10 percent duty on open cell, one of the most critical parts used to manufacture TV panels. But subsequently brought it down by half after protests from TV manufacturers. The report citing sources said that the government’s decision to impose a duty on open cell had prompted the company to look into alternate manufacturing sites.
It may be noted that Samsung earlier this year had announced a major expansion in its mobile phone manufacturing facility in Noida from 68 million annually to 120 million under the Make in India program. – ET Now News