Samsung Electronics, the South Korean consumer electronics and appliances giant, is poised to achieve a significant milestone in India, nearing an annual revenue of ₹1 lakh crore, approximately 27 years after commencing operations in the country.
As per recent regulatory filings with the Registrar of Companies (RoC), Samsung India Electronics reported a total income of ₹98,924 crore for the fiscal year 2022-23. This impressive figure is a testament to the company’s resilience and growth in the Indian market. Notably, Samsung India Electronics outperformed Hindustan Unilever Ltd (HUL) by a staggering 65% in terms of sales and outpaced ITC Ltd by 35% in the same regard during FY23.
In this fiscal year, Samsung India’s sales exhibited remarkable growth, increasing by 16% when compared to the preceding year. Despite this positive trajectory, the company experienced a decline in net profit, which fell to ₹3,452 crore from ₹3,844 crore in the fiscal year 2021-22. This dip in profit can be attributed to macroeconomic challenges that affected demand for smartphones, televisions, and household appliances during the latter part of the fiscal year.
The star of Samsung India’s operations is undoubtedly its mobile phone business, which raked in an impressive ₹70,292 crore in revenue during FY23. This revenue surpasses the standalone sales of both ITC (₹70,251 crore) and HUL (₹59,144 crore). Samsung India’s mobile phone sales also experienced a substantial increase of 27% during this fiscal year, with the success of its ultra-premium Galaxy Z series of flip and fold phones, premium S series phones, and a strong foothold in the mid-segment contributing to its growth.
Tarun Pathak, research director at Counterpoint Research, highlighted Samsung’s achievement in bolstering its premium smartphone offerings across various price points, increasing the average selling price by 15% in India. Notably, the company’s smartphone sales demonstrated growth even amid a declining overall market. Samsung’s launch of its financing scheme also played a pivotal role in attracting and upselling customers. Last fiscal year, Samsung reclaimed its market leadership from Xiaomi, underlining its dominant position in the Indian smartphone market.
The mobile business is now the cornerstone of Samsung’s operations in India, accounting for 71% of the company’s total sales, up from 67% in the previous fiscal year. Additionally, Samsung’s home appliances business in India witnessed substantial growth, achieving sales of ₹11,844 crore during FY23, marking an 18% increase from the previous year.
Samsung’s dedication to the Indian market is evident in its increased capital expenditure, as well as a substantial workforce investment, reflecting the company’s long-term commitment to India’s prospects. Samsung India’s journey from a small startup to becoming the nation’s premier consumer brand is an impressive testament to its growth in the Indian market.
In its RoC filings, Samsung revealed that it is not only achieving significant milestones but also investing in India’s manufacturing ecosystem, announcing a ₹1,588 crore investment to establish a new compressor manufacturing plant near Chennai. This investment is a key part of Samsung’s efforts to expand its component ecosystem in the country.
In terms of market share, Samsung leads the Indian smartphone market with an 18% share in the June quarter, followed closely by Vivo at 17%, Xiaomi at 15%, Realme at 12%, and Oppo at 11%. In the smart television segment, Samsung holds the second position with a 9.6% share, trailing Xiaomi with a 9.8% share for the January-June period of the current year, according to a report by Counterpoint Research.
Samsung’s remarkable journey and success in India exemplify its commitment to innovation, product quality, and serving the needs of Indian consumers.
