Samsung to invest ₹1,000cr in Chennai facility following labor disputes
What's the story
Samsung Electronics has announced a massive ₹1,000 crore investment in its Chennai-based facility. The decision comes after the labor disputes at the site earlier this year. T. R. B. Rajaa, the state's minister for industries, investment promotion, and commerce, confirmed the development. The factory has over 2,000 employees and plays an integral role in Samsung's sales operations in India. It produces refrigerators, TVs, and washing machines, and contributed to one-fifth of Samsung's $12 billion sales in India in FY23.
Controversies
Investment follows labor disputes
The Chennai facility has been at the center of labor disputes in recent months. In February, workers held a sit-in over employee suspensions. Earlier, hundreds of workers had gone on a five-week strike last September, demanding higher wages and union recognition. Rajaa said that Samsung's investment "reinforces their faith in the labor force of Tamil Nadu state." He also revealed that the company plans to create an additional 100 jobs at its facility as part of this investment.
Company response
Samsung's stance on labor disputes
Samsung has not commented on the latest development, while the minister did not provide a timeline for this investment or address any potential implications of the labor disputes. The workers' union has accused the company of union-busting tactics, a claim Samsung denies. The company maintains that it is "compliant with all applicable laws."
Twitter Post
Take a look at the official post
🚨 Samsung to make an additional investment of Rs. 1000 crore in existing facility in Sriperumbudur, creating 100 more jobs, reinforcing their faith in the labour force of Tamil Nadu: Honourable Minister for Industries Dr. @TRBRajaa. #InvestInTN#BullishOnTN#JobsForTN…
— Minister for Industries, GoTN, India (@TNIndMin) April 25, 2025