The Noida facility produces smartphones, tablets, and refrigerators. (Image courtesy of Samsung Electronics)
SEOUL, Dec. 9 (Korea Bizwire) – In a significant pivot toward the world’s most populous nation, South Korean corporate powerhouses are intensifying their focus on India, seeing it as both an antidote to their China-dependent supply chains and a promising frontier for growth.
Companies like Samsung Electronics, LG Electronics, and Hyundai Motor are expanding their footprint in India through increased production capacity, premium product offerings, and public listings, industry sources said on December 8.
This “India rush” by South Korean firms is driven by the subcontinent’s massive population of 1.42 billion and its strategic position as a manufacturing hub for exports to Middle Eastern and African markets.
The potential for growth is particularly evident in India’s untapped home appliance market, where penetration rates for refrigerators, washing machines, and air conditioners stand at just 38%, 17%, and 8% respectively.
With a growing middle class and a young demographic dominated by people in their 20s and 30s, demand for premium smartphones and home appliances is surging.
The Korea Trade-Investment Promotion Agency (KOTRA) projects India’s home appliance market to nearly double from $11 billion in 2019 to $21 billion by 2025.
India’s government policies have also created a welcoming environment for foreign investment. The country, which ranks third globally in Foreign Direct Investment, has implemented production-linked incentive schemes worth $26 billion across 14 sectors, including white goods, telecommunications, automobiles, food processing, advanced chemical batteries, drones, and pharmaceuticals.
Samsung, which entered India in 1995, operates manufacturing facilities in Noida near New Delhi and in Sriperumbudur. The Noida facility produces smartphones, tablets, and refrigerators.
The company maintains research and development centers, the Samsung Semiconductor India Research facility, and a design center, employing approximately 18,000 people across various operations.
The tech giant has maintained its leadership in India’s TV market since 2017 and reclaimed the top position in the smartphone market in 2023, six years after losing the top spot. Samsung has also established itself as a major player in India’s network infrastructure.
LG, which established its first Indian subsidiary in Noida in 1997, has built a comprehensive local business structure over 27 years. The company’s Indian subsidiary has seen revenue grow 33.6% over five years, from 2.47 trillion won in 2018 to 3.30 trillion won last year. LG aims to triple its Indian business by 2030.
Hyundai, which entered India in 1996, recently completed a $3.3 billion IPO for its Indian subsidiary, the largest in India’s history, valuing the operation at approximately $19 billion. The automaker aims to establish itself as a top-tier player in India’s automotive market, the world’s third-largest with annual sales of 5 million vehicles.
Ashley Song (ashley@koreabizwire.com)
