Samsung is consolidating its Indian operations by merging its infotech and telecom operations, currently carried out through Samsung Electronics India Information & Telecommunications, with Samsung India Electronics, its flagship in India. The merged entity would have a combined turnover of almost Rs 5,000 crore (Rs 50 billion) by the end of the current year, Samsung executives said.
The move to consolidate its operations follows the recent acquisition of the stake held by its Indian joint venture partner - the Dhoots of Videocon group - in Samsung India Electronics. The Dhoots through Reasonable Computer Solutions held a 26 per cent stake in Samsung India Electronics.
Confirming the development, Samsung India Electronics director Ravinder Zutshi told Business Standard, "Since both the companies are now 100 per cent owned by the parent, we are merging the operations as there are significant synergies between the two companies."
Samsung entered the Indian market in 1995 through Samsung India Electronics (consumer electronics and home appliances), it set up its research and development centre in Bangalore in 1996. For IT/ telecom products, Samsung Electronics India Information & Telecommunications was formed in May 2000.
Today, Samsung India Electronics has emerged as one of the leading players in the consumer electronics industry.
Samsung Electronics India Information & Telecommunications, which is positioned as an IT essentials company, has a product portfolio of PC monitors, hard disk drives, laser printers, multifunctional products and mobile phones (MP3 and CDMA). For CDMA, it has a tie-up with Reliance Infocomm.
