Samsung to invest Rs 3,500 Cr for setting up smartphone display manufacturing unit in Noida
Consumer electronics major Samsung is investing Rs 3,500 crore to set up a smartphone display manufacturing unit in Noida.
Samsung India Electronics, the Indian unit of South Korean electronics giant, has transferred a land parcel of around 64,905 sqm to Samsung Display, for a consideration of Rs 92.20 crore at its Noida plant, UP in two installments, according to the regulatory filings before the Registrar of Companies (RoC).
Besides, Samsung India Electronics has also granted a loan of Rs 3,500 crore to Samsung Display Noida (SDN) for a period of three years, according to documents sources by business intelligence platform Paper.vc.
"The parent entity of Samsung Noida Display Pvt Ltd Viz Samsung Display Company Ltd, Korea has provided the coprorate guarantee equivalent to the loan amount to the company," the filing stated.
The draft corporate guarantee is to be issued by Samsung Display Co Ltd, Korea, in favour of the company, it added.
Samsung Display Noida, a group entity of the company, has been incorporated "with the principal business of manufacturing, assembling, processing and sales of displays (including their parts, components and accessories) for all types and sizes of electronic devices".
To establish a manufacturing unit, it had approached Samsung India Electronics for transfer of land parcel.
Eungkyo Seo, the whole-time director of the company, is also a director of SDN, it added.
In the Indian handset market, Samsung India competes with the likes of Xiaomi, OnePlus, and LG.
Samsung India Electronics' consolidated net profit fell over 58 percent to Rs 1,540.5 crore in 2018-19, according to a regulatory filing. The firm had posted a net profit of Rs 3,712.8 crore in the financial year 2017-18.
However, the company's total income rose 20 percent to Rs 73,085.9 crore in FY19 from Rs 61,065.6 crore in the previous fiscal, as per the documents filed by the company to the RoC.