UP To Become The Next Big IT Destination

by CXOtoday News Desk    Jan 28, 2015


Uttar Pradesh seems to be gearing up as the next big investment destination for technology companies. IT and telecom majors, Samsung and Spice Group have recently announced their expansion and growth plans in the state. Samsung India announced an investment of Rs 517 crore for the expansion of its Noida plant under the Uttar Pradesh Mega Policy. The Spice Group has also announced an investment of Rs 500 crore to set up a manufacturing unit in the state.

According to Samsung, an online monitoring system has been put in place to monitor the expansion processes on a real time basis in order to adhere to and meet Global Quality Standards.  Samsung has also invested in a modern training facility spread over 35,000 square feet within its manufacturing premises to focus on capability building and skill enhancement of its employees. The company informed it is strengthening its manufacturing infrastructure and will gradually expand capacity at this plant to meet the growing domestic demand for mobile handsets. Samsung’s new Tizen phone, Z1, will also be manufactured at the Noida facility with most of the phone’s software being developed at the Noida Research Centre, the company said in a statement.

“Uttar Pradesh is one of the most important states for Samsung and the expansion of the Noida Mobile unit will further strengthen our presence in the country and enhance our manufacturing operations. The Noida factory is a star performer and rates as one of the best facilities across the globe,” Hyun Chil Hong, president & CEO, Samsung India Electronics told PTI, adding that Currently over 11,000 Samsung employees are working in UP and ‘we are looking forward to create more job opportunities in the state.’ Spice Group also signed an MoU with the government of Uttar Pradesh for setting up the manufacturing unit in the state. The manufacturing unit will support the company’s strategy to introduce affordable mobile internet devices in India through domestic manufacturing, it said. As per the MoU, the government of UP will support Spice Group in establishing the facility in the State of Uttar Pradesh in a time bound manner and facilitate the necessary infrastructure, ecosystem and incentives under various schemes announced by the state and central governments.   

“Uttar Pradesh has had a strong connection with our group, ever since we set up the country’s first photocopier manufacturing plant in the state. We would like to thank the Government of Uttar Pradesh for once again extending their support in expanding our company’s business plans,” said  Dilip Modi, chairman, Spice Group. He added that with a local manufacturing plant, Spice Group can achieve its vision to create affordable and high technology mobile products for a larger audience.

Meanwhile, IESA, the trade body representing the Indian electronic system design and manufacturing (ESDM) industry, has also signed an MoU with the State“for promoting an ESDM industry ecosystem”.  

Under the MoU, IESA will assist the UP government in setting up incubation centres, developing roadmap for the industry, preparing detailed project reports for brownfield and greenfield EMC; setting up international desks for the State in foreign locations and in talent and skill development.

“We commend Government of Uttar Pradesh’s effort to ensure ‘Make in India’ in the state and we are confident to induce the required momentum needed to ensure success for ‘e-Uttar Pradesh 2015’,” said Ashok Chandak, Chairman, India Electronics and Semiconductor Association.

“Government of Uttar Pradesh has identified ESDM as a focus to ensure economic growth, enhance employment opportunities, promote indigenous product development and safeguard investors’ business intention in the state. Along with IESA, we are confident to create a favourable ecosystem for electronics manufacturing in the state and build Uttar Pradesh for a brighter tomorrow,” said Jiwesh Nandan, IAS, Principal Secretary, Department of IT and Electronics, Government of UP.

The investments by the two companies are also part of the same initiative. The MoUs are expected to generate 50,000 jobs in IT and electronics sector.