Sep 4: The change in policy by government with import of components related to TV panel has started showing its consequences. Electronic manufacturing giant Samsung has now decided to pullout from TV manufacturing in the country, opting for the route of import that has been apparently seen as viable by the company.
According to newly emerged reports, the South Korean manufacturer is looking to cease the production of TV units in India. Samsung will instead be importing the units to the market from countries like Vietnam.
The company has already alerted its local suppliers about the move. Currently, Samsung manufactures its TV units at its manufacturing plant in Chennai. The unit has an annual production capacity of three lakh units. The count will be brought down and eventually brought to zero soon, according to sources.
The move comes in contrast to the manufacturer’s policy for smartphones in India. During the recent launch event of its world’s largest smartphone manufacturing unit in the country, Samsung had disclosed its plans to further localize the production of smartphones in the country. The decision to cease the production of TVs is believed to have caused by the government move to impose import duty over open cell, one of the most important parts used in manufacture of TV panels.
The government had decided to impose the import duty during the Union Budget, during when the government decided to impose 10% duty. It was later revised and brought down marginally following the protests by TV manufacturers. However, the reduction apparently seems inadequate to prevent Samsung from exiting TV manufacturing in the country.