Samsung announced it will double the production capacity for mobile phones and fridges at its main factory in India, by investing a large sum of money into expanding production facilities.
The company said in a statement on Wednesday it would spend 49 billion rupees ($764 million) over three years to expand the factory on an additional 35 acres at the site on the outskirts of New Delhi.
India is the world’s second biggest smartphone market and its fast becoming a battleground for handset makers vying for a bigger share as sales in Asian powerhouse China start to lag.
“Samsung would want to reduce their dependence on manufacturing in Vietnam and shift more operations to India,” said Tarun Pathak, associate director at technology research firm Counterpoint.
Samsung’s expansion also comes at a time Indian Prime Minister Narendra Modi’s government is pushing to increase technology manufacturing through its flagship “Make in India” initiative launched in 2014.