Strengthening Regional Ecosystem: How the Samsung Chennai Plant Powers Local Economy and Innovation

Samsung India’s Chennai factory has long been recognized not only for its innovation and cutting-edge manufacturing capabilities but also for the strong relationships it fosters with its local suppliers. These partnerships have been key to the plant’s success, driving growth and innovation across the supply chain. As Samsung continues to grow, it ensures that its suppliers grow alongside, creating a network of beneficiaries that also contribute to the economic development of the region.

 

Building Long-Term Relationships

Samsung’s commitment to fostering long-term relationships with its suppliers has been pivotal in ensuring high-quality products and services. Many of these partnerships date back several years, founded on the principles of trust and collaboration.

 

Rikun Manufacturing and CJ Polytechnic are two major suppliers in the area which have been Samsung’s trusted suppliers for many years. Rikun is a Sriperumbudur-based manufacturing company that specializes in consumer electronics product design and manufacturing. Similarly, CJ Polytech is a manufacturing company based in Tamil Nadu that operates in producing metallic and non-metallic products.

 

“We started our manufacturing journey in 2018 and Samsung was our first customer. Samsung has always treated us as a partner rather than just a supplier. This has made all the difference. The regular feedback and opportunities for collaboration have helped us improve not only the quality of our products but also our operational efficiency,” said Pradeep Jagalan, Vice President, Business Development, Rikun Manufacturing.

 

Sriperumbudur has grown in scale since the early 2000s. “In 2008, around 2000 workers used to flock in for work in Sriperumbudur from other local areas but today more than 70000 workers here have jobs,” Pradeep recalled.

 

“We have learnt from Samsung, how to uplift our people with the right kind of upskilling. Samsung capitalizes on our strength as they understand us well. If Samsung was not there, Rikun wouldn’t exist,” he added.

Samsung’s approach emphasizes open communication, encouraging suppliers to innovate, improve, and provide feedback. By treating its suppliers as partners, Samsung ensures that both entities can focus on mutual growth and development.

 

Driving Innovation through Collaboration

At the heart of Samsung’s partnerships with suppliers is a shared commitment to innovation. The Chennai factory, one of Samsung’s key manufacturing hubs, has worked closely with local businesses to introduce new technologies and processes that raise the bar for quality and efficiency.

 

Suppliers have benefited from Samsung’s resources, including access to cutting-edge technologies, training programmes, and a culture of continuous improvement. By sharing its expertise and resources, Samsung enables suppliers to enhance their capabilities, making the entire supply chain more agile and efficient.

 

Shakthi Vel, Plant Head, CJ Plolytechnic, puts it in perspective. “CJ Polytechnic started working with Samsung in 2010. The relationship since then has been flawless. Samsung’s focus on innovation challenges us to push the boundaries,” he said.

 

“They are always looking for new ways to improve, and they encourage us to do the same. These innovations not only help suppliers meet Samsung’s high standards but also enable them to compete more effectively in the wider market,” he added.

 

Growth and Expansion for Suppliers

Samsung’s suppliers have seen tangible growth as a result of their partnerships with the Chennai factory. Many local businesses have expanded their operations, invested in new technologies, and increased their workforce to meet the growing demand from Samsung.

 

“Working with Samsung has not just helped us grow enormously but also opened up new markets. We’ve been able to expand our production capacity many folds and the consistent demand from Samsung has given us the confidence to invest in new equipment and talent. We started with 20 employees and we have more than 350, all thanks to Samsung,” Shakthi said.

 

This growth is not limited to revenue; suppliers are also seeing improvements in operational efficiency, employee training, and product quality. These advances position Samsung’s partners as leaders in their respective industries, capable of competing on a global scale.

 

Empowering Local Economies

Samsung’s commitment to working with local suppliers in Chennai has had a ripple effect that goes beyond the factory gates. By supporting local businesses, Samsung is helping to create jobs, stimulate economic growth, and drive innovation in the region. This approach strengthens not only Samsung’s supply chain but also the local community, contributing to India’s overall economic development and ecosystem growth.

 

Through these partnerships, Samsung continues to set the benchmark for collaboration and innovation in the manufacturing sector, empowering its suppliers to grow alongside the company and cementing its position as a leader in the industry.