Samsung: Going from `Make for India` to `Make for the World`
| Case Code: OPER154 Case Length: 18 Pages Period: 1996-2021 Pub Date: 2021 Teaching Note: Available |
Price: Rs.400 Organization : Samsung India Electronics Pvt. Ltd. Industry : Electrical & Electronics Countries : India Themes: Supply Chain Management, Macroeconomic Environment, Government Policies, International Operations |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Samsung’s India Entry
In December 1995, soon after India’s economic liberalization , Samsung entered India through a 51:49 joint venture called SIEL, with Reasonable Computer Solutions Pvt. Ltd (RCSPL) that was owned by Videocon Industries Limited (See Exhibit IV). In 1996, Samsung set up its first factory in Noida, Uttar Pradesh (UP), and its first R&D center in Bengaluru, Karnataka. In 1998, Samsung acquired RCSPL’s stake and SIEL became a wholly-owned subsidiary..
Samsung’s ‘Make in India’ Initative
By the mid-2010s, Samsung was India’s biggest mobile and TV brand. It had become the market leader in the television segment in 2007 and the market leader in the mobile segment in 2012. Smartphones emerged as Samsung’s biggest revenue generator in India, contributing over 60% of its top line. Asim Warsi, Senior Vice President, Mobile Business, SIEL, said, “Our philosophy of keeping our ear to the ground and incorporating consumer feedback into our products has enabled us to remain at the top in the smartphone market.” Samsung also had the largest sales and service network of any company in the country..
From the ‘Make In India’ Initative to the ‘Make For India’ Initiatve
At the time when the company was working on plans to enhance its manufacturing capabilities, Hong also launched the ‘Make for India’ initiative, which focused on consumer-centric India innovations, to attract customers and battle the stiff competition across all its segments. For multinational companies, Made for India products meant that a device had some specific features incorporated based on the Indian consumer’s need or after studying their behaviour on a large scale. Dipesh Shah (Shah), Managing Director of Samsung R&D Institute popularly called SRI-B, in Bengaluru which was Samsung’s biggest research center outside Korea, said, “So, Mr Hong told us we have been doing Make in India successfully for two decades..
‘Make in India’ Leading to the ‘Make for the World’ Initative
In 2018, Samsung inaugurated its new mobile phone manufacturing facility in Noida, which also emerged as the world’s largest mobile factory. The phase-wise expansion of the plant was expected to be completed by 2020. At the same time, it launched its ‘Make for the World’ initiative, whereby it aimed to export mobile handsets produced in India, to overseas markets..
The Road Ahead
In India, SIEL had two manufacturing facilities, three R&D centers, and one design center. It had around 10,000 engineers working at its R&D facilities in India and was one of the biggest recruiters from the IITs. It had 200,000 retail outlets and over 70,000 employees. It also boasted 3,000 service points and 180,000 stores, which the company claimed was the largest retail footprint for any brand in the region..
Exhibits
Exhibit I-About The Make in India Initiative
Exhibit II: Companies Information
Exhibit III: Samsung Organizational Structure
Exhibit IV:
Samsung’s Timeline in India
Exhibit V: Samsung India’s Market share - 2017
Exhibit VI: Timeline of Samsung’s Noida Factory
Exhibit VII:
Details of Technologies
Exhibit VIII: PLI Scheme (Production-linked Incentive Scheme): Fact Sheet
Exhibit IX Premium Smart Phone Market Share H1 2020
Exhibit X: SIEL Key Financials Trend 2020-2019 (Amount in INR Billion)
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