Samsung India outsources production of its smartphone models

According to latest reports, Samsung India has outsourced production of some of its smartphone models to a Sino-India contract manufacturing joint venture, as part of its plans to make the South Asian nation a hub for servicing its local and global clients.

Samsung has already begun exporting India-made phones to Middle East, Africa and Vietnam, almost three years ahead of schedule. The South Korean company was in talks with other contract manufacturers as well to expand local production, since its existing capacity is running at full and contract manufacturing route would help it meet the high demand that some of its popular models such as A and M series.

According to the sources, Samsung Electronics' global supply chain executives have recently visited the factory in Bawal and have made agreements for additional contracts in the future, which means increasing the contract manufacturing capacity.

India allows 100% foreign direct investment through the automatic route in contract manufacturing to attract more players – on the lines of Foxconn, Wistron, Flex and others – to set up bases in India to make for the domestic market and export from here.

Samsung continues to expand capacity at its own plant at Greater Noida, which is expected to be completed by next year.