Samsung is looking to stop TV production in India and works out plans to import the units from Vietnam.
Korean electronics giant Samsung might soon stop producing TV units in India.The move comes months after the government introduced import duty on a key component and some other parts that go into making TV panels. Time of India reported that the consumer giant is working on plans to import TV units in this country from Vietnam.
Samsung makes televisions at its factory in Chennai, and annual production is estimated at around three lakh units. Official sources in an interaction with The English Daily informed the company has sounded out some of its local suppliers about plans to curtail, and gradually withdraw production from Chennai.
The company’s intention to move out TV production comes months after it had announced a massive expansion in mobile phone manufacturing in the country under the ‘Make in India’ programme.
Sources said the government’s decision to impose an import duty on “open cell”, one of the most critical parts in TV panels, during the Union Budget had prompted the company to look into alternate manufacturing sites. The budget had imposed a 10 percent duty on open cell, which was subsequently brought down by half after protests from TV manufacturers. However, the reduction was still insufficient.
Samsung’s plans may also be linked with India’s trade negotiations for the Regional Comprehensive Economic Partnership (RCEP) agreement with China and Vietnam.