July 3 : Sriperumbudur’s transformation from an agricultural belt on the outskirts of Chennai into one of India’s most prominent industrial corridors is a story of manufacturing-led growth, infrastructure development and long-term collaboration between global companies and local enterprises. Among the companies that have played a defining role in shaping this ecosystem is Samsung Electronics, whose manufacturing facility in Sriperumbudur has not only contributed to Tamil Nadu’s industrial growth, but also enabled an extensive network of local vendors and MSMEs to scale their operations, improve capabilities and compete at global standards.
Samsung established its manufacturing facility near Chennai in 2007 within the SIPCOT industrial belt at Sriperumbudur, around 40–50 kilometres from the city. The facility manufactures televisions, refrigerators, washing machines, home appliances and consumer electronics, and has since evolved into one of Samsung’s key production centres in India.
However, the story of Samsung’s presence in Sriperumbudur extends beyond manufacturing volumes and exports. It is equally a story of how a large global manufacturer helped nurture a regional industrial ecosystem by working closely with local suppliers, vendors and MSMEs. Over the years, several Tamil Nadu-based enterprises have expanded operations, upgraded systems and strengthened capabilities through long-term collaboration with Samsung.
Today, the Sriperumbudur belt hosts a diverse network of component manufacturers, logistics providers and service partners that have steadily enhanced their capabilities in quality, efficiency and innovation to meet international manufacturing benchmarks.
One such example is United Industries Plastic Private Ltd, whose growth journey mirrors the broader industrial transformation of the region. What started as a modest operation with two units has now expanded into a six-unit enterprise across Chennai, including a facility dedicated to supporting Samsung’s requirements.
For Keerthi Mahalingam, the partnership with Samsung has been far more than a conventional buyer-supplier relationship.
“Samsung treats us as partners rather than suppliers. Over the last 13 years, there has been significant knowledge transfer — from manufacturing practices to organisational systems. It has helped us evolve into a stronger company,” Mahalingam says.
As Samsung expanded its manufacturing operations, the expectations around quality, compliance, workplace systems and sustainability practices also increased across the vendor ecosystem. For many local partners, adapting to these standards became an opportunity to build stronger internal capabilities and institutional processes.
Mahalingam points out that several operational systems introduced through collaboration with Samsung helped suppliers improve their own business practices.
“Samsung has set a very high benchmark in terms of processes, employee care and ESG practices. Their yearly audits encourage continuous improvement. We have adopted several of these practices in our own facilities, including structured transport systems and enhanced workplace standards,” he explains.
Such capability-building has also contributed to broader industrial development within the region. As major manufacturers established themselves in Sriperumbudur, many ancillary businesses and supplier units expanded operations closer to the manufacturing hub, creating a robust ecosystem of interconnected enterprises.
“The entire belt has developed over the years. Many companies have grown alongside Samsung,” Mahalingam adds.
The impact of this ecosystem-led growth is also reflected in the experience of Vignesh Polymers India Private Ltd, which has operated in Sriperumbudur since 2007 and partnered with Samsung for nearly 15 years.
According to Selvakumar, one of the defining strengths of working with Samsung has been the company’s structured and systematic operational approach, which has enabled vendors to plan their businesses with greater confidence and efficiency.
“With Samsung, planning is very systematic — from purchase schedules to delivery timelines. This helps us plan our own operations better and invest with confidence,” Selvakumar says.
Over time, the collaboration encouraged suppliers to strengthen capabilities across multiple business functions, including planning, purchasing, quality management and research and development. This continuous upgrading became increasingly important as Samsung introduced more advanced and premium product categories requiring higher manufacturing precision and quality standards.
“We have learned extensively across planning, purchasing, quality and R&D. As Samsung continues to introduce new and premium products, we also upgrade our capabilities to match global quality expectations,” Selvakumar notes.
This emphasis on continuous improvement and technological advancement has helped local suppliers participate in increasingly sophisticated manufacturing processes, strengthening Tamil Nadu’s position as a leading electronics manufacturing destination in India.
Beyond manufacturing and industrial growth, the development of the Sriperumbudur ecosystem has also contributed to visible improvements in infrastructure and employment opportunities across the region. Over the past decade, roads, transport connectivity and industrial support systems have steadily improved as economic activity increased.
Selvakumar believes the transformation of the region has been significant.
“From around 2015 to today, the difference is very clear. Infrastructure has improved, roads are better, transport connectivity has strengthened, and more businesses are operating in the region. Employment opportunities have increased for local communities,” he says.
Samsung’s engagement with the region has also extended beyond industrial operations through various community initiatives and social investments aimed at contributing to long-term local development. According to vendors, the company has maintained strong relationships with surrounding communities and educational institutions, helping strengthen the broader ecosystem around the manufacturing hub.
“Samsung maintains strong relationships with nearby communities and schools. These initiatives also help strengthen the ecosystem,” Selvakumar adds.
As Sriperumbudur continues to evolve into one of India’s most important manufacturing corridors, the relationship between Samsung and its vendor ecosystem reflects a broader model of industrial development built on partnership, capability-building and shared growth. Suppliers have not merely expanded production capacities, but have also adopted stronger systems, improved workplace practices and enhanced technological capabilities through sustained collaboration.
For many businesses operating in the region, the journey of growth continues alongside the evolving demands of global manufacturing.
“Based on Samsung’s evolving requirements, we continue to develop ourselves,” Selvakumar says.
From enabling suppliers to expand operations and create employment, to raising benchmarks in quality and operational excellence, Samsung’s presence has played an important role in shaping Sriperumbudur’s industrial ecosystem. The region’s growth story is therefore not merely one of factories and exports, but of collaboration — where shared ambition, long-term partnerships and continuous improvement have collectively created a foundation for sustained economic development in Tamil Nadu. With the Indian electronic industry set to touch $500 billion by 2030, the story that one would need to remember is in unity lies the strength and at times all it takes is for a company to ensure that the growth story is not one where a single hero is the star but the entire cast of collaborators.