Late last year we've reported on Samsung's alleged plans to restart manufacturing TVs in India. This change in Samsung's strategy appears to have now been confirmed by Dixon Technologies executive chairman, Sunil Vachani, in a recent stock market notice cited by The Economic Times India.
According to the report, Dixon Technologies will manufacture LED TVs for Samsung at its factory located in Tirupati, Andhra Pradesh. In other words, Samsung will restart manufacturing TVs through a local manufacturer as opposed to reopening its Chennai factory.
Sunil Vachani expects this new collaboration to help Dixon Technologies grow, however, the report makes no mention of when exactly the production of Samsung's LED TVs will begin. The two companies have also reached an agreement a couple of months ago for the production of feature phones in India.
Samsung might be looking for other partners as well
Samsung used to manufacture its own TVs for India at its plant near Chennai. The company ceased production more than a year ago due to a 5% tax imposed by the Indian government and moved its production to Vietnam. However, the 5% tax was dropped late last year and reports began suggesting that Samsung will make a return through a collaboration with Dixon Technologies and possibly other partners.
According to the previous report, Dixon will manufacture TVs with screen sizes of up to 55 inches. It remains to be seen if Samsung will want to restart its own production line near Chennai, but the company might find it more profitable to rely on local partners rather than to move its TV production from Vietnam back to India. Time will tell if Dixon Technologies will remain the sole manufacturer of Samsung LED TVs in India or if the Korean company will be looking for additional collaborations to ensure a high-enough production capacity.
