5 Korean firms to invest Rs 1,154 crore in the city, providing employment to 8,706 youths.
The appliances and consumer electronics (ACE) market in India is expected to grow to US$ 21.18 billion by 2025 from US$ 10.93 billion in 2019. In April 2021, the Union Cabinet approved a PLI scheme for white goods (ACs and LEDs) worth Rs. 6,238 crore (US$ 840.89 million), boosting the manufacturing industry.
India is steadily progressing towards building its own manufacturing hubs in various manufacturing segment in various states.
In last few years Uttar Pradesh is fast emerging as a hub of multinational companies not only from US and Germany, but also from China and South Korea because of the investor-friendly policies of the Yogi Government. Many Chinese and Korean companies have been investing in the electronics sector in Greater Noida in the last four-and-a-half years of the present Government.
Major Chinese firms like Oppo and Vivo are setting up their units in Greater Noida. Similarly, five Korean companies have acquired land in Greater Noida to establish their factories at the cost of Rs 1,154 crore in the electronics sector. The companies will provide employment to 8,706 youths.
The five big companies that have bought 3.51 lakh square metres of land so far to set up their factories in Greater Noida, include Samkwang India Electronics, KH Vatech India, Cenetech India, Dreamtech and Stereon. These are the most reputed mobile parts manufacturing companies globally.
According to officials of the Greater Noida Industrial Development Authority, Samkwang India Electronics is setting up its unit at an estimated cost of Rs 440 crore, which will employ 4,000 people, while KH Vatech India is investing Rs 247 crore and Sentech India Rs 34 crore to establish their own that will provide employment to 786 and 350 people respectively.
Dream Tech and Stereon have acquired land in Sector Ecotech 10 to establish their plants at the cost of Rs 433 crore, The two units will employ 3,570 youths. Besides, some other Korean companies are also willing to buy land in Greater Noida to set up their plants whose names the State Government is likely to reveal soon, the officials added.
With Chinese and Korean companies investing, Greater Noida is emerging as a data centre hub on the one hand and a stronghold of Korean electronics companies on the other.
One of the main reasons for these investments by Korean companies is the recent investment of Rs 7,429 crore and Rs 2,000 crore by Chinese majors Vivo and Oppo respectively in Greater Noida. The entry of Chinese electronics companies into Greater Noida to manufacture laptops, mobile phones and other gadgets has paved the way for Korean companies to establish their own plants in order to compete with their Chinese rivals.
As for the State Government, it is helping Korean companies at every step to facilitate establishment of their plants in Greater Noida. Samsung is one of the prime example, that how they have invested heavily and now manufacturing most of its products from this facility.
The investment being made by these Korean and Chinese companies in Greater Noida will provide employment to thousands of people in the state while the Government will get huge revenue in the form of GST from the products being made in the factories of these companies.
The domestic manufacturer also evolved an now playing a vital role in mobile accessories and consumer durables, brands like SPPL, LRIPL, ERD, Mandeep Cables, Staunch, Videotex etc. are now manufacturing in a big scale and serving various brands who earlier importing most of their products.
All this has been possible due to the progressive industrial policies of Chief Minister Yogi Adityanath aimed at promoting investment in the state and the introduction of One Window System by him for speedy clearance of investors’ proposals.
Today, multinational companies from US, Germany, China and Korea are all investing in the state.