After its ‘Make for India’ strategy, Samsung India believes it is in a position to consolidate its market leadership in the country.
Despite the threat from Chinese players, the Korean firm claims it can protect its turf with leading market shares across categories such as premium televisions, frost-free refrigerators and microwaves.
“2017 has been one of the best performing years for Samsung India. We continued our 12 years of leadership in televisions with a 30 per cent share and a 50 per cent share in the premium TV segment. Even in frost-free refrigerators, we continued with 40 per cent share and also strengthened our position in the microwave category with a 34 per cent share,’’ said Rajeev Bhutani, Vice- President, Consumer Electronics Business to Business Line.
But the threat of Chinese brands continues to loom, and in the case of mobile phones, Chinese consumer electronics brands have also been growing rapidly in the country. But Samsung’s Bhutani seems to be unperturbed. “External reports suggest that the Chinese players are still marginal in India and we will continue to create, add value and expand in this market with our core strengths in R&D and innovation,’’ he said.
Besides, local manufacturing will also ensure that Samsung does not have to pay the steep customs duties (which has recently been doubled) across categories such as televisions and microwaves. “Our operations will not get impacted due to the rise in customs duties. We do not need to investment behind additional capex to manufacture any of the durable categories and this would also apply to high-end products like curved televisions, which we are now in a position to make in India at our local plants,’’ he said.
In June this year, Samsung had announced an investment of ₹4,915 crore to add fresh capacity at its Noida plant which would lead to doubling its capacity for both mobile phones and refrigerators. “Almost 99 per cent of what we sell is ‘Made in India’ and there is enough investment that has been made to meet our capex needs,’’ he said. Besides, Samsung India also claims to have absorbed the high GST rates at 28 per cent in the consumer electronics categories and would not be passing it on as price hikes to consumers.
But, instead, it may have to take a 2-3 per cent hike in 2018 due to the increasing raw material costs like copper. “There could be a 2-3 per cent increase in the first half of 2018 due to raw material costs. This would not be linked to GST new rates,’’ he said.
However, it will continue to focus on the rural markets with affordable prices and products to keep up its ‘Make for India’ tagline. “Our ‘Made for India’ products will be customised and affordable for developing India which is rural since the product requirements are different in this market,’’ he added.
