NEW DELHI -- The India-Korea Business Partnership Forum 2024 held at the Yashobhoomi convention center in New Delhi on Friday highlighted India’s potential to grow as more than a manufacturing hub.
South Korean tech behemoth Samsung Electronics believes Indian talent will drive innovation to take the country a step further on the global stage.
“Samsung was one of the first companies to realize India's potential as a manufacturing powerhouse. Each state represents a diverse micro-ecosystem with its own unique needs and preferences,” Chun Sang-pil, corporate vice president and chief relations officer at Samsung Southwest Asia, said in his speech.
“What stood out was the deep trust and belief that the Indian customers placed in us. This trust became a foundation of our growth in the country and now Samsung has become a household name and a trusted partner for both the Indian government and millions of Indian families,” he said.
Samsung Electronics set foot in India in 1995, launching an office in the country as a joint venture with a local company. Its first factory in Noida began production in 1996. In 2006, Samsung expanded its Indian operations by setting up a plant in Chennai.
“Today, Chennai plant manufactures not only for India, but for the world. It manufactures a wide range of consumer electronic products like TVs, refrigerators, washing machines, air conditioners, and compressors (used for refrigerators).”
Chun described the expansion of the Noida plant in 2018 as a “remarkable” achievement in India. That year, the company invested $700 million to upgrade the plant, doubling the production capacity.
“The Noida plant is often referred to as one of the world's largest mobile phone manufacturing facilities,” Chun said. “The plant produces not just smartphones, but also tablets and laptops, helping India emerge as a global hub for mobile technology.”
“It also helps Samsung meet growing demands for its innovative products and services across the country while fulfilling the company's vision of Make in India and export for the world.”
In addition to the two plants, the tech giant operates three research and development centers in the country, across Noida, Bengaluru and Delhi.
“These centers focus on the advancement in AI machine learning technology and user experience design. More importantly, the talent driving this innovation is predominantly Indian, highlighting the depth and distinction of India's workers,” Chun said.
The company also runs two flagship corporate social responsibility initiatives in the country: Solve for Tomorrow and Samsung Innovation Campus.
“(Through the initiatives) we have educated and empowered thousands of students across India who are now ready to think, work and innovate in any part of the world. These programs ensure that the leaders of tomorrow are well-prepared to shine on the global stage and drive the next wave of innovation,” he said.
Chun projected India will continue to play an important role in Samsung’s global expansion.
“By diversifying our suppliers and distribution channels, we can build more resilient operations, capable of withstanding external challenges.”
Hyundai Motor also stressed it will continue to bet big on the country as a foothold for its global expansion, following a historic $3.3 billion initial public offering debut on the Indian stock market in October.
“India is the fastest growing auto market in the world,” Tarun Garg, chief operating officer of Hyundai Motor India said, calling the Indian automobile sector a "sunshine industry.”
“The automobile industry contributes 7.1 percent to the Indian gross domestic products with more than 90 million employments and exporting vehicles to more than 100 countries, with annual sales of 24.8 million units,” he said.
Hyundai Motor's journey in India goes back two decades.
“With a bold vision to transform mobility in India, we laid the foundation stone for our first manufacturing plant in the southern state of Tamil Nadu in 1996 and launched the Hyundai Santro in 1998 which became an instant revolution,” Garg said.
“By 2004 we had established ourselves as the largest car exporter from India, a title we are proud to uphold to this day on a cumulative basis of export of passenger vehicles from India.”
Hyundai operates two plants in Chennai. In 2023, it acquired an additional auto plant in Talegaon from GM and invested 4 trillion won ($2.86 billion) to upgrade it into a manufacturing production hub. Operations are planned to commence in 2025.
“Our manufacturing capacity is set to grow to almost a million units next year and 1.1 million by 2028, fueled by our upcoming plant,” Garg said.
The motor giant also focuses on Indian consumers’ growing purchasing power for passenger cars. According to Garg, passenger car sales may account for a modest 17 percent of the Indian market by volume, but in terms of value, the portion surges to almost 60 percent.
“With a diverse portfolio of 13 models, including eight sport utility vehicles, we cater to the aspirations of modern India,” he said. “Our vehicles celebrate India's diversity with infotainment in 10 regional languages.”
Backed by the growth, on Oct. 22, Hyundai Motor India made history with the largest-ever IPO in the country. Hyundai plans to use the pooled funds to ramp up production and accelerate its push into the electric vehicle market.
“Hyundai Motor India is poised to lead the transformation in the automotive industry with forward-looking initiatives, investing big in India,” Garg said, highlighting the company’s plan to invest $32 billion in the country by 2032.
"At Hyundai, we do not build just cars, but we build livelihoods, nurture talent and align our vision with India's aspirations.”
Executives of India-oriented companies were also in attendance to share insight into India’s growth potential.
"We are setting up our first half a million-ton green ammonia project on the East coast of India and other projects are planned on the western coast of India," Narinder Goyal, president of new initiatives and ammonia at Avaada Group said.
Avaada Group is an Indian green energy company headquartered in Mumbai. It has a presence in renewable energy generation, from solar energy, green hydrogen, and methanol to ammonia.
"Korea is already among the largest investors in India," Goyal said. "Indian and Korean governments are paving the way for free trade arrangements through comprehensive economic partnership agreements."
He further suggested companies from India and Korea to partner with each other to develop commercial ammonia fuel ship engines and hydrogen cars.
"I invite partnership between Indian and Korean companies for the purpose of decarbonization of this planet, keeping this planet living for many, many more years," Goyal said.
Seshadri Sarathi, president and chief assurance officer at Anand Group, an automotive company in India that manufactures and supplies automotive components and systems, delivered a speech on future growth drivers, under the title “Bilateral Cooperation for Strengthening India’s Manufacturing Base.”
He stressed India has a “locational advantage” as a manufacturing hub, considering the country is situated in Southwest Asia, a region that can bridge Asia with Europe and Africa.
“Products can be manufactured in India and exported globally from the country,” Sarathi said.
Other advantages are labor and manufacturing costs and the availability of skilled workforce.
Sarathi also pointed out that India has to improve the quality of production to rise as a manufacturing hub for the world.
"Even though we have many opportunities, we have challenges like the quality. Quality concern is a real concern. We need to put a lot of effort in improving the quality of the products," he said.
Another area of needed growth would be sustainability, he said.
“More and more global companies would like to work with companies that can ensure sustainability,” he said.
Sarathi also highlighted Anand Group’s partnership with Korean companies such as HL Mando, equipment manufacturer and supplier for leading carmakers such as General Motors and Ford. Anand Group has been working with HL Mando for over twenty years, he said.
