How Samsung came to India in 1995 !

When The Prime Minister of India and The President of South Korea inaugurated The World's Largest Mobile Factory in Noida, (U.P) India on 9th July, 2018 of Samsung; it is very nostalgic moment for this writer as 'Being a member of the core team to facilitate Samsung launch in India in 1995, One of first Employees of Samsung India Electronics Limited (SIEL) and a Signatory to its original Articles / Memorandum of Association.'

Even for sake of history - and am sure all my contemporaries (both Indian and Korean) have their own Sepia Memories - it's worth reflecting on this momentous day in the incredible success saga of Samsung & Korean Enterprises in India as how it all began ?

India - Circa Mid 90s : Indian Economy was opening up, all Global players were eyeing it with excitement (and anxiety) as to how to enter, sustain and make an impact. Remember, this was much before the Mobile/ Internet/Automobile Revolution. Consumer Durables (Consumer Electronics/Home Appliances - CE/HA) were the then fancy. While the Indian Brands commanded majority of the mass segment, the Top End had the strong presence of the Japanese (Sony, Panasonic, Matsushita) and then the American Giants (Whirlpool, GE, Electrolux).

Korean V/S Japanese : So strong was the brand presence - and image - of the Japanese brands as 'Technologically Superior' and Korean brands as ' behind' (Yes, Seems strange to read that today) that each and every presentation by the Korean executives had Sony and Panasonic in the top Right Quadrant : as a far away Dream to Aspire for !! All those folks would be really happy to see where Samsung (and to a large extent, LG in Durables) have arrived - globally. But for now, lets get back to New Delhi - and Seoul.

After months of back n forth (which included endless day and some all - nite meetings by top brass on both sides in The Hyatt, Oberoi and Meridien of N Delhi and also Hotel Shilla - then owned by Samsung - in Seoul), Samsung Electronics (SEC) decided to establish presence in 1995 in India as a joint venture with its local partner. And some of us - including me - actively involved in the parlays for the last year formed the initial Employees and core team of what is now a INR 50,000 Crore (USD 7 Billion) company in India.

Whatever can go wrong often will : We (That's the feeling We worked with) were a true 'Start-up' (to grow into a Real Unicorn) when nobody knew a 'Start-Up'. Operations started actually in a Small Hotel in South Delhi renting its rooms, then moving to the first Corporate office (took months to build its State of the Art Facade, which then ended up facing legal hassles) was a challenge to engage new business partners/employees (Who is Samsung ? Are they here to stay ? Will they understand the Indian Consumer/CE market ?). For the initial team members, it was sheer leap of faith - in the brand, the promoters, & themselves. (Delhi used to be scorching summers & chilly winters, laced with frequent/long power cuts. Gurugram of today was non existent, South Delhi was the action and Noida just emerging ) Even the first factory site ended up in Noida (so thankfully for Samsung and India) after the first chosen site in another neighboring state ran into contractual issues. Seems comical now, but what may have concluded the Samsung story in India even before its inception . The global leadership of Samsung Electronics (SEC) was at Delhi Airport to board a 50 Seater Chartered plane to visit select business cities in India , and snags developed with the aircraft making it unable to fly. Its Mid '1995, Destiny wanted to welcome Samsung to India, and we could get the leaders tour back on track in few hours arranging a back - up plane, by the full support of the local partners !!

What made Samsung Take off : While the local partner, all core team members ( and good timing) contributed immensely to the initial success of Samsung brand in India, there are some facets which clearly stood out. (Pic: Sr. Korean Leadership at the SIEL Product Launch in Agra in Dec'95, writer is 2nd from right)

Immense Pride in their Brand, Work, Country : With only few Sr Korean team members in India (and lots of business visitors from Seoul), how Samsung was able to make an impact was very deep sense of their commitment. The Korean team members would work all nite if the CTV was not working. They could drink till late at company parties, yet all would be ready for their next morning meeting, on time. They invested big time on the brand, Product pull, Service network (areas often sidelined in the Dealer- Controlled Electronics Trade in India), chose to launch limited Product Lines in select States in India, and then gain market share. (Pic of writer with initial group of Branch Heads of N India)

They implemented SAP way back then , and adhered to it company wide. It was not easy to enforce in India, but they got it done. There was an attendance register at office front desk (this is 95-96) and was taken to the MD's room two minutes after time. Seems trivial now, but it did impact habits- for the better. SIEL started CSR efforts right from beginning.

As a case study of success of Samsung (and Korean Enterprises) in India, The Korean team members mingled and tried to understand at grass root level - staff, their families, festivals, celebrations/ marriages, dealers, vendors, varying nuances of regions in India. They tried to get the real pulse of the market/ consumer/ employees, and also localize wherever possible. (Pics of '96 :HO under construction on 47 Ring Road, Lajpat Nagar, N Delhi with H.R Head (Late) Sudhir Singh; Letter Head ; Holi with the Koreans)

In the deep-rooted David V/S Goliath with Japanese brands, India offered them an unique chance to upstage their traditional rivals, and the Koreans grabbed and capitalized on it with all their might. With their relentless Product Innovation and Brand Marketing, later the advent into Mobile Phones, Samsung India (and globally) scaled to a different Galaxy. SEC remitted specific funds from HO annually to SIEL as MDF/SDF (Marketing/Service Development Fund) devoted only for long term brand building in India via Marketing and Service initiatives. Also, With their strong ability to adapt, Post the Asian crisis in '97 and their phone debacle some yrs back, Samsung always re-emerges ;Stronger, Fitter !

(Pic:The 1st Invoice being signed by SIEL M.D. in '95, my Korean Manager/CFO in Red-Blue Tie, with core team member Mr DK Bhagotra to his right, I was managing Finance/Corp. Affairs) Ably supported by the local leadership and team members, Koreans faced challenges that India presented head on ; legal, employees, trade, supply chain, manufacturing - with an eye to embrace, learn and surmount. The Focus and Product lineup and investments for India in Product, Marketing, After Sales were all top notch. Wizcraft managed a state of the art Product Launch for SIEL and the MD spoke a few lines in Hindi to wow the dealers. Again, the world was not all rosy. There were huge challenges - at Corporate, Management and Team levels, and not all were left happy. But, for SEC and its local reps, They always focused on Samsung growth juggernaut .Our colleague (and later Samsung India Dy MD Mr Ravi Zutshi (in dark glasses, pullover in Alumni pic below) used to say " We did Prayers and laid the foundation at Noida factory with so much faith, it keeps spewing wealth for Samsung ever since ".

From 'World's Best CTV' to 'World's Largest Mobile Factory' : Samsung had a large screen CTV Model in 96-97 called 'Worlds Best' . So strong was this desire to showcase excellence that Samsung Marketing brochure even then had pic of their hoarding at Times Square as mark of their global presence. ( I wanted but could not buy a Samsung CTV in major stores in NYC in late 90s, had to get one shipped from Samsung factory in North NJ).

Well, who cares for all the above ? Sure, in the world racing ahead, who cares for who did what when a company began ? Yes, for all those who were part of their initial journey, its a treasured part of our being. We know what each of us gave to Samsung, and the value Samsung returned to us. I moved on in just few years, others stayed longer and some original team members still going strong at SIEL. We moved to different places globally, some of us worked together even after SIEL, some retired; yet a part of Samsung is in each.

We have a SIEL Alumni Group "Forever Samsung'ites" (Pic : Dec' 12 Inaugaral Reunion, with our First Dy MD Mr RK Caprihan on extreme right ) and stay connected. My Korean Manager - Jae Min Hwang (Pic below with writer: Indo- Korean Ethnic Attire, ' 96 ) - he and I just got along, worked great together; despite barriers of communication, culture and country and have kept in decent touch ever since. Every Diwali, I call him in Korea and on just my 'YeoBo -Seyo' , he immediately replies "Happy Dee-Waali, Mr Mucc-hhal !"