A result of Government’s decision to slap an import duty on display panels for TVs resulted in the shifting of Samsung’s TV production from India to Vietnam last year. It started to import TVs made in Vietnam in order to serve the Indian Market.
Certain speculations signalled that the government might grant some relief to Samsung in case it commits to bring back its TV manufacturing to India had import duty been removed. However, Samsung was not showing much of an interest to this initially but seems there’s good news.
According to local media Samsung will restart its Tv production in India after a year since the government is going to scrap the import duty. Dixon Technologies, a local contract manufacturer will be the one with whom Samsung would work to produce TV with display size of up to 55 inches. This has been thought fair enough to cater 85% needs of the Indian Market.
Samsung is however already associated with Dixon through its home appliances segment for over two years. In fact, it was just last month when both the companies joined hands to manufacture feature phones. It is nevertheless assured that Dixon is not the only contracting manufacturer for Samsung. Samsung is in fact looking for more contracting manufacturers so that their TV productions in India increases.
The restart of the TV production line by Samsung in its Chennai’s factory is also being reportedly evaluated. Concrete policy assurances might also be asked from the Government so that the 5% import duty on panels that has been scrapped do not get reinstated in the coming years. Since it has already paid fair charges for relocating its Production to Vietnam, getting it back without a prior confirmation would hardly make any sense.