Samsung To Make TVs In India From December 2020 Onwards

Samsung India will start local production of its television sets in India by December 2020. The consumer electronics and smartphone giant has confirmed the same in a letter to the government.

As per a report by ET, Samsung India wrote a letter to the IT and electronics minister, Ravi Shankar Prasad on September 28. In the letter, the company has asked for permission to import TV sets till the time it establishes its TV manufacturing plant in India, hopefully by December.

(Representative Image: Reuters)

The letter comes as a response to the recent addition of television sets on the restricted list of imports in the country. The ruling on July 30 restricted the import of TV sets for the first time in 20 years. The move is meant to discourage imports from China and boost local manufacturing in the country.

As per the new ruling, companies need to procure license to import TV sets from other countries. The ET report mentions that the government has not issued any such permit so far.

In its letter, Samsung India now asks the government to ensure ¡®business continuity¡¯, especially in the upcoming festive season. Maintaining the ¡°current threshold volumes is pivotal for setting up of the domestic TV manufacturing facility¡±, the company wrote in the letter.

Imported units have been held at customs since the ruling. Samsung, in its letter, pointed out that the import impediments were ¡°against the ethos of Ease of Doing Business.¡± It further said that holding up the imports is impacting business.

¡°As we are setting up the TV manufacturing plant by December 2020, we request for smooth operations and business continuity,¡± the Samsung letter was quoted in the ET report. Sources cited in the report say that the company has also written to the Prime Minister¡¯s Office and Directorate General of Foreign Trade.

(Representative Image: Reuters)

Samsung had earlier shut down its television plant in Chennai in 2018. The company started importing TV sets following the import duties imposed on open cell television panels. Since these panels made for more than 65% cost of the TVs, Samsung started importing televisions from Vietnam.

The company will now look to make its Chennai facility operational. Company executives cited in the report hint that the high-end models like 75-inches and above will continue to be imported while other, majorly selling models will be produced locally.

The company has claimed that with the local facility, it will be able to cater to the majority of the domestic market and hence drastically reduce India¡¯s import dependency in the sector..